Low Volatility, Big Questions—Producers Look for Signals Amid the Quiet
- Ryan Tungseth
- Sep 11
- 2 min read
The Market Dilemma: Producers are asking: should you sit tight or start hedging now? Grain markets are resting, options and spreads whispering rather than shouting. But with harvest just getting underway and a major USDA report due at week’s end, waiting too long might leave you exposed.
Corn & Soybeans: Corn has put in a big crop, but storage is heavy and bids weak. The spread between corn and wheat remains compressed, limiting upside until demand catches up. For soybeans, signs point toward slight yield cuts, but without demand—especially from big buyers like China—those cuts may not translate into prices that move the needle. Watch new crop contracts; any rally will need strong justification, and if there is one, be ready.
Risk Management Tip: Consider using put spreads on new crop contracts. Limits cost, gives upside protection, and keeps you ready if demand or weather surprises us.
