Texas/New Mexico Stateline | With the amount of spec money and commercial trading going on, I would say it is very possible for every farmer in the country to have hedged a large portion of their production.
Average volume for corn for example is roughly 500,000 a DAY. That is 2.5 Billion with a B traded every day. Surely us dumb farmers could skim a few contracts from the speculators over a few weeks??
Dec 18 alone volume is around 150-190k contracts per day.
Plus 1/2 million bushels of mini contracts per day also.
edit: I understand your point, you are saying if everybody sold all at once the price would drop dramatically. But I am also saying considering the volume every day, multiplied over several months, there are tens of billions of bushels traded back and forth, and if farmers sold 3/4 of their production into that volume, it would not be a drop in the bucket of what is traded. So the effect would be minimal, IMHO.
Edited by milofarmer1 7/2/2018 21:11
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Sorry guys, today was my fault.
