If you have not priced any new-crop corn this year, watch the market carefully over the next few weeks. Use any weather-related price rallies to price a portion of your expected fall corn production. Corn may have a good rally if the hot and dry weather continues. If prices rally, consider selling a portion of expected production as prices approach these resistance levels. Both domestic and foreign demand continue weak.
Planting continues for the U.S. crop, and demand continues weak.
Projected carryover stocks for the 2001 crop are the highest in several years. But the real problem lies on the demand side. Higher fuel prices could favor demand in the longer term, but for now the market seems content to accept the current demand situation as a given. However, if prices increase above the call strike price sold, you would have to meet margin calls. Fences do have significant risk involved.