Option Analysis – Grains 8.05.22

Jerry Hanselman General Commentary Leave a Comment

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

MONTHSTRIKEPRICEPREMIUM COST
SEP ’22136010500
NOV ’22124016.5825
 120010500
 11607350
JAN ’2311207350
MAR ’23 11008.5425
 JUL ’2310208.5425

END USERS

MONTHSTRIKEPRICEPREMIUM COST
SEP ’2216006.5325
NOV ’22166013650
 17009.5475
 17606.5325
JAN ’23180012600
MAR ’23 190012600
 JUL ’23210011.5550

*Cost in above tables does not include commissions and fees

CORN HEDGE OPPORTUNITIES
PRODUCERS

MONTHSTRIKEPRICEPREMIUM COST
SEP ’225809450
DEC ’2253010500
 5008400
 4805250
MAR ’235008400
 JUL ’234809450

END USERS

MONTHSTRIKEPRICEPREMIUM COST
SEP ’226309450
DEC ’227509450
 7706.5325
 7905250
MAR ’238407.5375
 JUL ’2390010500

*Cost in above tables does not include commissions and fees

WHEAT HEDGE OPPORTUNITIES

PRODUCERS

MONTHSTRIKEPRICEPREMIUM COST
SEP ’227209450
DEC ’2266012.5625
 6408400
 6206300
MAR ’2362010500
 JUL ’2356010500

END USERS

MONTHSTRIKEPRICEPREMIUM COST
SEP ’228609.5475
DEC ’2212007.5375
 12207350
 12406300
MAR ’2313609.5475
 JUL ’23160011550

*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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