Corn and wheat were up; soybean was mixed; and cotton was down for the week.

On Friday, April 14, the old crop–new crop corn futures spread expanded to $1.06 ¼ per bushel the largest spread between the May and December futures contracts since May 16, 2022. The price spread is amplified in cash markets in Tennessee, due to strong old crop basis compared to current new crop basis offerings. There remains a large amount of uncertainty in price direction for new crop corn. However, based on current market information there continues to be a bearish undertone in new crop prices. Managing price risk through purchase of out-of-the money put option contracts, for the new crop, is worth considering at this juncture. This strategy can be used to mitigate a portion of the futures price risk and buy time until more information is known about the 2023 crop. If new crop prices rise, the option position can be exited and a portion of the premium recovered. Continue reading at Tennessee Market Highlights.