Frank Johnson was chewing over his options for the upcoming year. On the subsequent day, January 12, the U.S. Department of Agriculture (USDA) World Agricultural Supply and Demand Estimates report was scheduled to be released. From Johnson's perspective, the greatest issue was the projected corn carryover from 2010.
Johnson Family Farm – Hedging Decision Case Study Solution
The low carryover boded well for corn prices. At that time, the USDA estimated a U.S. average cash corn price for 2010-11 of $5.20. With present spot prices at about $5.83 per bushel, he expected the outlook to truly improve but was concerned about the overall cost uncertainty. The uncertainties related to the usage of corn in ethanol production and demand from China for corn emerged huge in his judgment. He desired to consider whether he should evade all or a few portion of the crop of these year.
PUBLICATION DATE: December 28, 2011 PRODUCT #: UV5639-HCB-ENG
This is just an excerpt. This case is about INNOVATION & ENTREPRENEURSHIP
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