Harvest is here for farmers in the South and getting closer for those up North. It’s a time when farmers don’t just hope they have a profitable crop but plan for a profitable year come 2020.
Brian Splitt, with AgMarket.Net, says farmers don’t necessarily have to focus on one production year at a time.
“If you look at the history of December corn contracts over the last five years, we’ve consistently made lows, [be it] late winter or even in to late spring, just before summer.”
Spliltt says looking at the December 2020 contract now, it may make sense to lock in a portion of production.
“I think it’s a safe bet if you look at $4.10 December corn, and then at some point next spring think you should have the spread between December and July, [you could get to 30 cents]. You could roll your Dec. $4.10 sale to July.”
AgDay Host Clinton Griffiths talks more with Splitt about locking in profits in this video: