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March Newsletter

Feature Article – Margin Management and Seasonality Revisited
In “Margin Management and Seasonality Revisited,” we discuss implied volatility and how this relates to an option’s premium. The implied volatility of an option is an important component to its price and something a producer should consider when evaluating flexible strategy alternatives. Looking at the December Corn market specifically, we explore the current level of implied volatility from a historical and seasonal context. Being more informed on this important dimension of option pricing can help you make better margin management decisions when executing strategies to protect your forward revenue and input costs.

Margin Watch Review
Get the latest outlook for profitability in the crop, swine, cattle and dairy industries. While margins have remained relatively stagnant over the previous month, the improvement in dairy margins has been noticeable. Hopefully, we will begin to see margin improvement in other sectors also as we thaw out from winter and move into the spring season.