The outlook for soybean futures couldn’t have been much darker when growers were making their crop plans early in 2016. Some analysts were saying the harvest price could have a six in front of it.
Instead, soybeans began to rally, helped by higher oil prices and some central bank decision-making. Soybeans began rising from $9 to $9.50 to $10 and on to close to $12 a bushel at one point.
Growers working with Steve Scott, president of Scott-Agri, Little Rock, Ark., began booking soybeans at $9.50 and bought November $10 calls for around 20 cents per bushel. When prices continued rising, they were able to benefit from the higher prices while having a floor under their crop.
Scott talked about how growers can use a risk management strategy of buying puts and selling calls to help market their crops at the spring board meeting of the Agricultural Council of Arkansas in Forrest City.
