Corn and soybean producers have long identified price risk as one of the highest risk management priorities of the farm business. One of the major challenges, as well as sources of frustration, of corn and soybean pricing is the extreme variability in prices, not only across years, but within years. For example, during the 25 years from 1982-83 through 2006-07, the average marketing year price of corn received by Illinois producers ranged from $1.54 (1986-87) to $3.30 (1995-96). The daily spot cash price of corn in central Illinois during that period ranged from $1.22 (October 16, 1986) to $5.25 (July 11, 1996). The range of spot cash prices during the 12-month marketing year was not less than $.45 (1990-91) and was as large as $2.52 (1995- 96).
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