After selling physical corn, a producer can regain some upside price exposure by buying a call option on corn futures. The call does not buy grain back: it gives the buyer the right, but not the obligation, to establish a long futures position at a specified strike price. The option costs a premium and can expire worthless.
What “reowning” corn means in this strategy
Here, “reowning” means restoring exposure to a possible rise in corn prices after selling the crop. The producer buys a call on corn futures rather than repurchasing physical grain. That distinction matters: the contract changes price exposure, not what is stored, delivered, or owned as grain. Bryan Doherty described this marketing idea in a 2017 Successful Farming article; any market levels or premiums in that article are historical, not current.
How a call on corn futures works
A call buyer pays a premium for the right to establish a long position in the underlying futures contract at the strike price. If futures rise, the call may gain value. The buyer may sell the option before expiration or exercise it. Exercise creates a long futures position; it does not transfer ownership of corn. Futures exposure then continues and must be managed under futures-market rules.
If prices do not rise enough, or the option loses value as time passes, the buyer can lose some or all of the premium. A call is not a guaranteed profit or an exact offset to the price received for the physical sale. Its value depends on the futures price relative to its strike, time remaining, and volatility.
#1 Best Overall
What to decide before buying
There is no universally suitable strike, expiration, premium, or contract quantity. Compare the choices against the bushels sold, the relevant futures contract, and your ability to manage a futures position if the option is exercised.
- Strike price: Consider the strike relative to the futures price and how much the market would need to rise for the call to become valuable. A lower or higher strike changes the exposure and the premium; no particular strike is right for every farm.
- Expiration and month: Match the option’s expiration and underlying futures month to the period of price exposure you want. More time remaining can affect value, and the option may lose value as expiration approaches.
- Premium and total cost: The premium is paid up front. Multiply the quoted per-bushel premium by the contract’s bushel size and the number of contracts to estimate the total option premium, before any fees. That amount is at risk if the option expires with no value.
- Quantity: Compare the option contracts’ total bushel representation with the quantity of corn sold. The fit may be imperfect; an option does not automatically match the volume or economics of a farm’s sale.
- Position management: Decide in advance how you would respond if the option gains value or is exercised, since exercise creates a futures position rather than a physical-corn purchase.
Contract size and minimum price movement
CME Group’s corn options specification, last updated October 6, 2026, lists one option contract as representing one corn futures contract, or 5,000 bushels. Its minimum premium movement is one-eighth cent per bushel, equivalent to $6.25 per contract. Check the current CME corn options specifications before trading, because contract terms can change.
The 5,000-bushel size is a practical constraint: a contract may represent more or fewer bushels than a producer wants to expose to a price increase. The premium calculation also uses that contract scale, so the quoted per-bushel premium is not the total cash cost of a contract.
Buying a call is different from writing one
Buying a call to regain upside exposure is not the same as writing (selling) a call to collect premium. For the buyer, the option loss is limited to the premium paid. A call writer can face potentially unlimited risk and may have margin requirements. These are materially different positions; collecting premium by writing a call is not a lower-cost version of buying one.
Free tools Windows power users keep installed
One-click scans. No signup required.
What this strategy does not settle
A futures call can add exposure to futures-price movements, but the sources do not establish that it offsets local basis risk, storage economics, taxes, or other farm-specific considerations. Nor does it ensure that the option’s gain will match the value or timing of the physical sale. Those factors need separate consideration when evaluating a grain-marketing decision.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Questions to take to an adviser
- Which futures month is relevant to the price exposure I want to regain, and what is the option’s expiration?
- How does the strike compare with that futures price, and what market move would be needed for the option to gain value?
- What is the premium for the number of contracts considered, and can I accept losing all of it?
- How closely does the contract quantity correspond to the bushels sold?
- If exercised, how will I manage the resulting futures position?
CME’s Fundamentals of Options on Futures explains the general mechanics. A grain-marketing adviser can help assess how a particular contract fits a producer’s circumstances; no strike, month, or premium is appropriate for every farm.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
