December corn has gained about a dime, and November soybeans have gained about 20 cents. December corn peaked just over 2.60 in late December 2000, and November soybeans peaked at just over 5.30 in late November and early December of 2000. December corn continues to hang right around loan rate so the prospects for an LDP may not be good next fall. Many things can happen to influence the price of corn so it will be important to keep track of where the price is. Cash flows will need to be adjusted if the LDP disappears.
Soybeans are an entirely different creature right now.
I feel we face the real possibility of a rally but nothing to take us over the loan rate. If we do get a rally and put options are used to put a floor in, the only thing you are out is the premium. The soybean price structure is going to take some careful study. The future gain from November 2001 to July 2002 is 32 cents. A 42 to 47 carry is even money at best when you consider the cost of storage to July 2002.