Last year was a challenging year for preharvest pricing. Hindsight says the best opportunities came in February, which was an unusual time for a high price. The market offered a modest but lower pricing opportunity in April. Neither opportunity made my blood rush, so I need to forget last year.
Venting frustration does not help. Let’s instead clean the slate and look ahead to my preharvest marketing plan for corn in 2026.
Like all of my preharvest plans, this one features two key elements:
My corn marketing plan has minimum price objectives of $4.60 cash or $5 for December ’26 futures. These prices are consistent with the projected breakeven cost of production in southern Minnesota. In mid-November, we were just 30 cents away from pricing 2026 corn.
Here’s an interesting tidbit that speaks to the frustration in 2025. A year ago, I ran across a market analysis that noted in 20 of the past 20 years, December futures traded above the spring crop insurance price between March 1 and Nov. 30. Even more compelling is that in all but one of those 20 years, December prices rallied at least 20 cents higher than the February average.
Well, guess what? In 2025, the spring crop insurance price, also known as the February average, for December ’25 corn futures was $4.70 per bushel, and we never reached that level again before expiration.
2026 will be interesting because every year is. We can only hope it won’t repeat 2025. Odds are high that this year will feature several unanticipated story lines and market drivers.
Let’s hope at least one story creates a price rally and the opportunity to get something done before harvest.
Remember these two things about your plan:
Let’s hope this plan is effective in 2026.
My preharvest plan
My 2026 plan that began Jan. 1 was to buy crop insurance to protect my production risk and price 75% of my anticipated corn crop, per actual production history, by late June:
Earlier sales may be made at a 50-cent premium and are limited to 30,000 bushels.
Ignore decision dates and make no sale if prices drop below $4.60 local cash price or $5 December futures.
Exit all options positions by mid-September.
