MACRO OUTLOOK: In my opinion, the medium to long term outlook for Soybeans is bullish. In review of the daily charts, I would suggest this recent move upward is caused by a sudden appearance of heat and dryness. Corn is a hold and Wheat is bearish. There is also a potential for the U.S. dollar to be stronger and cause a long term drag on Wheat. Once we get through this weather market look for pressure on the market. Please take a look at the below puts and calls about hedging your Grains using real examples. Keep in mind, commissions and fees are not included in the cost of the option.
SOYBEAN HEDGE OPPORTUNITIES
PRODUCERS
| MONTH | STRIKE | PRICE | PREMIUM COST |
| SEP ’22 | 1360 | 10 | 500 |
| NOV ’22 | 1240 | 16.5 | 825 |
| 1200 | 10 | 500 | |
| 1160 | 7 | 350 | |
| JAN ’23 | 1120 | 7 | 350 |
| MAR ’23 | 1100 | 8.5 | 425 |
| JUL ’23 | 1020 | 8.5 | 425 |
END USERS
| MONTH | STRIKE | PRICE | PREMIUM COST |
| SEP ’22 | 1600 | 6.5 | 325 |
| NOV ’22 | 1660 | 13 | 650 |
| 1700 | 9.5 | 475 | |
| 1760 | 6.5 | 325 | |
| JAN ’23 | 1800 | 12 | 600 |
| MAR ’23 | 1900 | 12 | 600 |
| JUL ’23 | 2100 | 11.5 | 550 |
*Cost in above tables does not include commissions and fees
CORN HEDGE OPPORTUNITIES
PRODUCERS
| MONTH | STRIKE | PRICE | PREMIUM COST |
| SEP ’22 | 580 | 9 | 450 |
| DEC ’22 | 530 | 10 | 500 |
| 500 | 8 | 400 | |
| 480 | 5 | 250 | |
| MAR ’23 | 500 | 8 | 400 |
| JUL ’23 | 480 | 9 | 450 |
END USERS
| MONTH | STRIKE | PRICE | PREMIUM COST |
| SEP ’22 | 630 | 9 | 450 |
| DEC ’22 | 750 | 9 | 450 |
| 770 | 6.5 | 325 | |
| 790 | 5 | 250 | |
| MAR ’23 | 840 | 7.5 | 375 |
| JUL ’23 | 900 | 10 | 500 |
*Cost in above tables does not include commissions and fees
WHEAT HEDGE OPPORTUNITIES
PRODUCERS
| MONTH | STRIKE | PRICE | PREMIUM COST |
| SEP ’22 | 720 | 9 | 450 |
| DEC ’22 | 660 | 12.5 | 625 |
| 640 | 8 | 400 | |
| 620 | 6 | 300 | |
| MAR ’23 | 620 | 10 | 500 |
| JUL ’23 | 560 | 10 | 500 |
END USERS
| MONTH | STRIKE | PRICE | PREMIUM COST |
| SEP ’22 | 860 | 9.5 | 475 |
| DEC ’22 | 1200 | 7.5 | 375 |
| 1220 | 7 | 350 | |
| 1240 | 6 | 300 | |
| MAR ’23 | 1360 | 9.5 | 475 |
| JUL ’23 | 1600 | 11 | 550 |
*Cost in above tables does not include commissions and fees
Jerry Hanselman
Senior Account Executive
Walsh Trading, Inc.
jhanselman@walshtrading.com
630-248-7576
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