Ed Usset, economist, University of Minnesota Center for Farm and Financial Management and Corn & Soybean Digest profits columnist, is bullish on corn and soybeans, noting that some growers regret having sold too early.

“It becomes a challenge because the market keeps going up,” says Usset. “But growers can’t dwell on the fact that some potential production has been sold too early and too cheaply. Instead, dwell on the fact that they’re not completely sold. That’s probably one-third to one-half of the crop left to sell.”

Usset usually doesn’t project what prices will do, but points out, “I’m not seeing any lessening of demand. I’m not seeing signs of rationing on the demand side.”

He advises growers to use government Risk Management Agency crop-revenue insurance and market their crops based off their coverage. “Most people are buying crop insurance in the 75-80% range,” he says. “They should get sold up to that before harvest.”

Melvin Brees, University of Missouri FAPRI economist, says RMA revenue protection insurance provides a starting point to manage some of the risks. “Base prices are on track to exceed $6 for corn and over $13.50 for soybeans,” he says. “While this provides revenue protection, it does not cover that much price risk if normal yields are produced.

“At 75% coverage, it would take corn prices below $4.50 to trigger payments with APH yields. This is $1.50 or more downside price risk. Revenue protection is an important risk-management tool, but more is needed to manage price risk.”