Recco Day 1: Buy back 10% of short December 2026 corn futures hedges (for modest 5 cent gain). Buy back 40% of short December 490 corn calls (for modest 2 cent gain). This leaves short futures and long December 450 puts in place to hedge downside against 90% of 2026 corn sales while reopening upside exposure for 50% of the position. The goal is to keep downside protection a bit longer through the growing season while opening longer term upside post-harvest. *************************** There are probably a lot of lessons that can be learned in the last week from the market. The first one that comes to mind is, “It is always bullish at the top.” Hopefully customers took our advice, selling on the way up. It would have been nice to get closer to the high, but we sold at profitable prices, choosing our targets rather than having it being chosen for us. Had it not been for the Black Swan event in the form of the Iran War, it seems reasonable to assume we never would have seen $5 corn. The seasonal high appears to be in. Giving up 30 cents in a week should not…
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