Corn Hedging Simplified: How to Lock In Profits Without Losing the Upside

The Smart Way to Protect Your Floor and Keep the Ceiling Open

The Setup:

Every year, the same pattern plays out—harvest ends, prices slip, and most operations start their planning too late. But this year, that hesitation could cost even more. Corn’s sitting in that frustrating middle zone: not low enough to buy, not high enough to sell.

So what’s the move?

This week, we’re breaking down the logic behind real-world hedges—simple, limited-risk setups that protect your floor and keep your upside open.

Why It Matters:

Too many hedgers still fall into the “sell everything or sell nothing” trap. The problem isn’t timing—it’s structure. A good hedge plan balances opportunity with protection. That means using tools like calls and puts strategically, not emotionally.

Here’s the reality:

• Calls give you the right to participate if the market rallies.

• Puts let you sleep at night knowing you’ve locked in a floor.

• The art is knowing when to buy them and how much to spend.

A 15¢ premium might sound like a cost, but it’s really the price of staying in the game when the market explodes higher.

The Playbook:

1. Plan Early. Don’t wait until the crop’s in the bin—start running numbers now.

2. Mix Strategies. Combine forward contracts, options, and incremental sales.

3. Think in Floors and Ceilings. You can give up a few cents at the bottom to keep unlimited potential at the top.

4. Know Your Break-Evens. Lock in profit, not just price.

5. Stay Nimble. The best hedgers aren’t the most aggressive—they’re the most adaptable.

Cattle Spreads: Quiet No More

While grains grind sideways, cattle spreads are moving. The front months have strengthened, the back end’s weakening, and volatility is opening doors for those watching closely. Not for the faint of heart—but full of opportunity for traders who understand the swings.

Final Thoughts:The difference between a good year and a frustrating one often comes down to timing—and the willingness to plan ahead. A smart hedge isn’t about guessing the high; it’s about guaranteeing a profit and keeping the upside open.

🎧 Hear Jon and Ryan break it all down → Podcast Here