Hedging Grain Price Risk


Grain price risk continues to manifest itself in the marketplace as major grains – corn, soybeans and wheat – exhibit either marked volatility and/or downward trends in pricing.  This presents meaningful hedging opportunities for consumers and producers.  

As corn prices continue a steady decline, consumers might consider locking-in near term prices with HTAs and fixed forward contracts, and locking-in long term prices with futures and swaps.  Wheat producers should consider increasing their hedge ratios with puts and short futures.  For soybeans, price volatility persists – near term call options for consumers may prove too expensive so organizations should consider costless collars, or a mix of collars and swaps for the longer term outlook.  

Why HedgeStar?

We offer hedging savvy and back-office expertise from advisors, CPAs and quantitative analysts who exemplify our core values every day. Let HedgeStar be your guide for cultivating a hedging program that meets your needs and aligns with your risk appetite. Call an expert today.

Please reload


Related Articles

Please reload


6400 Flying Cloud Drive #200

Minneapolis, MN  55344

Connect with us

  • White LinkedIn Icon

© 2018 by HedgeStar.  All rights reserved.