From Storing Beans to Straddles, Strangles, and 2026 Corn Plays

Low Volatility, Big Decisions: What Producers Should Be Thinking About Now

The Quiet Market Paradox

You can feel it across the board: volatility has drained out of the markets. Corn options are pricing in barely any movement, soybeans are flat, and even the tweets that used to shake things up barely move the needle.

Cheap options and slow-moving markets can lure producers into complacency.

Options and Storage: Playing Defense with an Edge

With implied volatility this low, options are inexpensive. Look for low-cost ways to protect downside while keeping upside open.

Storage decisions are also shaping up to be key. More soybeans are being stored than usual, and that could put pressure on corn. Jon argues that if you’re going to store something, beans make more sense this year than corn—but corn may offer better opportunities to own via calls or synthetic long positions.

For those planning ahead, this may be the perfect setup to build a 2026 marketing plan that combines cash sales with cheap options. The goal? Protect the floor, stay open to rallies, and avoid locking in lows out of fear.

Cattle: Rewarded Every Time—Until You’re Not

The cattle market refuses to quit. Every time someone calls the top, prices climb again. Feeder buyers keep getting rewarded, but as Jon explains, this kind of one-way trade rarely ends gracefully. Live cattle futures have raced ahead of cash, and it’s creating risk for everyone in the chain.

Wheat and Corn: Twenty-Year Extremes

The wheat-corn relationship is flashing red. Corn is now more expensive relative to wheat than at almost any time in the past two decades—last seen in the 2012 drought. That’s pushing wheat into feed channels and less corn demand for feed.

Kansas City wheat is even trading below Chicago wheat, which rarely lasts. Historically, those spreads turn higher as planting challenges or weather problems show up in the Plains.

Beyond the Farm: Inflation, Metals, and Market Energy

Zooming out, Jon and Ryan close the show by tackling the broader economic picture. Credit card debt is climbing, delinquencies are ticking up, and gold and silver are quietly rallying as investors hedge against what feels like another market bubble.

Even crypto made an appearance—though neither host is ready to trade their hedging charts for meme coins just yet.

Final Take: Don’t Confuse Quiet with Safe

Volatility this low can’t last forever. Whether you’re looking at beans in the bin, cattle in the barn, or corn for 2026, now’s the time to get strategic—because when the market wakes up, it’ll move fast.

🎧 Listen to the full conversation: thehedgeheads.com/podcast

Sponsored by American Federal Bank — supporting producers who plan ahead.