Your marketed crop bushels are represented on a progress bar and categorized as either sold, hedged, or unprotected.
- Sold = bushels committed for physical delivery to a buyer with or without a final price set.
- Hedged = bushels with limited market price risk through the use of risk management products (certain futures and options contracts).
- Unprotected = unsold bushels without any price protection. The value of this position will go up and down with the market.
- Total production = total projected bushels for a crop.
Here's how the different types of contracts affect each category:
- Cash contracts will count as sold, even if you have left the futures or basis price open, because you have committed to the physical sale of those bushels
- Long puts and short futures contracts will count as hedged, as these types of contracts limit downside risk for the price of your bushels.
- Long calls, short calls, short puts, and long futures will all have a neutral effect on your hedged position (i.e. no impact), as none of these contracts lock in a minimum price for your crop.