Death comes to us all. Life's but a walking shadow | Quote: "They are going to dump their inventory in the front end and then sell the snot out of the back end smashing basis into the ground in their wake."
If I understand what you're saying is that merchants will sell their grain at prevailing prices and then sell the futures in order to drive down the futures price and make their profit on the futures transaction?
And they're comfortable doing this because the probability of any serious shortfall is remote?
Doesn't that make them speculators rather than hedgers? Not that it matters, just that it changes how you view their motivation. |
For All You Guys Worrying About the DP Boogeyman
