Grain Rally Creates New Risk-Management Opportunities

Rising commodity prices are giving farmers another opportunity to reduce marketing risk ahead of harvest.

AgMarket-dot-net C-E-O Matt Bennett says producers are seeing some of the strongest grain prices in three years. He encourages farmers to consider rewarding the rally by locking in profitable price levels in case markets move lower.

Southwest Indiana farmer Tim Persinger says his crop remains uneven. Some low areas were completely drowned out, while healthier portions of his fields appear highly productive.

Persinger has not sold additional grain during the rally. He says he wants a clearer picture of his final production and plans to evaluate the crop again around Labor Day.

Bennett says each operation must make its own decision, but the current rally offers farmers a chance to protect against an unexpected market decline.