Farmers Face Critical Month Ahead as Corn and Soybean Futures Fluctuate

Corn and soybean futures took a hit this week as Midwest forecasts turned wetter and dryness worries faded, but markets are still up sharply for July.

Experts say producers can 'reward' the rally with sales by establishing price floors through cash sales or hedge-to-arrive contracts while simultaneously purchasing call options to maintain upside potential. This approach will allow them to defend their balance sheet and use available marketing tools.

Jon Scheve, advisor and owner of Scheve Grain, believes there's a 75% chance that the highs have been put in for December corn futures and a 25% chance they have not based on seasonal patterns. However, he thinks the current values for wheat and beans favor a switch from corn acres because values are below the cost of production in 2027.

Brian Basting, grain economist at Advance Trading, advises using marketing tools to keep the upside price potential open, even if setting a floor with a preferred sale. He also suggests purchasing call options to leave an opportunity open in case something surprises us in August or September.