If we bought protection — nothing would trigger today.
Both crops sit between modeled floor and ceiling. The collar costs nothing to keep in place. (Model only — no position open. We'd have to call Ritchie or a broker to set one up.)
Modeled bushels
35,000
corn 25k · soy 10k
Floor / ceiling · corn
$4.20/ $5.10
90¢ band · costless
Status today
Asleep
free to hold · in the model
Where price sits inside the collarCorn Jul · floor $4.20 · ceiling $5.10
Price stays inside the green band — protection sleeps. If it pokes through either edge, the model triggers.
AgDCA · Vol Lens · v0.3 · scan 06:50 CT
Today's tape · pattern read
All 3 reads agree: options are expensive — Giles, AgDCA, and realized vol on SN26
Hedge funds still building — positions early, no crowded-trade spike risk
Calendar is quiet — no big USDA reports or shocks in the next 21 days
Market expects more movement than we'll get — model says the vol won't arrive
Time decay works for us — every flat day, the call we sold loses value
Sell options, capped risk — bet with the pattern, not against it
The convergence is the conviction.
Contract
Giles
AgDCA
Mkt vs HV
Verdict
ZS · SN26
RICH
RICH
RICH·MILD
Sell premium — covered call against long futures. See ticket below.
ZC · CN26
FAIR
FAIR
RICH·MILD
Stand aside. Model overrides the HV/IV head-fake.
ZW · WN26
CHEAP
FAIR
CHEAP
Investigate, no trade. Black Sea regime AgDCA can't see.
✓Works ifBean stocks come in flat-to-bearish — price holds below 12200, you keep the $925 premium and any unrealized gain on the long futures.Theta accrues each day spot stays below the strike — time is the silent contributor.
✗Kills ifBullish supply surprise — beans gap through 12200 and ATM IV jumps past 32. The future caps; the call you sold mid-vol now reprices on a higher surface.
P&L proforma · at expiry, per contract
SN ±10% · 2.5% steps
At expiry, per 1 contract (5,000 bu). Cap kicks in at 12200 ≈ +1.41% from entry — every step ≥ +2.5% lands at +$9,425. Mark-to-market before expiry will differ as theta and IV evolve.
When to sell — seasonal price patterns for corn and soy
10-yr seasonal index
Weak sell Below avg Average Above avg Strong sell
Rule of thumb — tranche sizes by season
% OF TOTAL BUSHELS
Window
Months
Seasonal price
Sell target
Why
Harvest delivery
Oct–Nov
🔵 Weak (94–96)
15–20%
Cash flow — don't dump everything at the low
Winter recovery
Dec–Jan
🔵 Recovering (95–97)
15–20%
Basis improvement, post-harvest bounce
Pre-spring
Feb–Mar
🟡 Near avg (98–100)
10–15%
Light positioning, keep powder for spring
Spring strength ★
Apr–May
🔴 Peak (102–106)
25–30%
Corn & soy seasonal peak — biggest tranche
Summer weather
Jun–Jul
🟡 Fading (101–105)
10–15%
Weather premium window — opportunistic
Pre-harvest cleanup
Aug–Sep
🔵 Declining (95–102)
5–10%
Empty bins for new crop — avoid forced sale
Adjust for your cash-flow needs, basis, and risk tolerance. The spring window is your best shot at the highest price — aim to have the most bushels to sell then.
Reading the heatmap
Each cell shows the seasonal price index for that month — the average price
level relative to the 10-year mean (100 = baseline). A warmer cell means prices have
historically been higher that month. A cooler cell means prices tend to be lower.
Corn hits its seasonal peak in May (index 104) on spring
weather premium and ethanol demand, then fades through summer as new-crop pressure builds. Soybeans peak later in May–June (index 104–106) on
planting uncertainty and South American supply tightness, then decline into harvest.
* Seasonal patterns are tendencies, not guarantees. Use this as a timing guide alongside
your cash-flow needs, basis, and the tranche plan on the home page.
Current position
Crop
Stored
Sold
Tranche target
Status
Corn
9,115
3,500
55%
Behind
Soy
0
3,217
100%
Done
Per the tranche guide: we should have sold 30–40% by now. Instead we're sitting on 9,115 bu of corn in a fading July window. ~$9.75/day storage burn.