Before we go too far, I want to make sure everyone understands how puts work. A put is the right, but not the obligation to sell grain at a specified price. Remember that a put is the right to sell, but you are not obligated to sell at that price. Time is also a factor in determining premium value. December puts will be more expensive than September puts because there is more time, more risk and more uncertainty.
Puts are nothing more than price insurance.
When you buy a put, you are setting a price floor. Well the bad news is you probably cannot lock in a profit this year. If wheat rallies sharply, you might have the opportunity, but based on current market conditions, put options will only help to minimize losses, instead of guaranteeing a profit. The carrying charge gives you an opportunity to lock in a higher price for a distant month, and put options can help you take advantage of those prices. Farmers should always look for ways to sell the carry, and put options help you do that.