In times like this, it’s best to think more in terms of profitability than it is in terms of price outlook. Whether you are a corn, soybean or cotton producer, in the face of this volatility you’re still looking at record profits for this coming year’s crop. At these levels, you should be locking in selling prices on 50% or more of production. Profits like this have historically been known to dissipate very quickly. Don’t let them get away.

Specifically, new-crop December corn prices in the high $5 and low $6 are offers that should be well above the expected average for the whole crop year.

November soybeans approaching $13 also are at a level that should be substantially above the average price of the year. These are price levels that are also going to be very supportive to farmland values over the coming months and when you add the potential for increasing yields, farming incomes in 2011 will likely be at new, all-time record highs.