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Clarke Co, Iowa | On August 21st there were 181281 open September corn contracts. On the 28th the board of trade estimated that only some place between 0 and 400 of them would be delivered. As of close September 1st there are now only 4054 open contracts. So 177227 contracts were bought back by traders closing out their positions. That's 886,135,000 bushels of corn that never really existed. What would have happened if someone wanted to really mess with the market and tried to take delivery of a few thousand contracts? 1000 contracts $3.49 X 5000 X 1000 = $17,450,000 total and then they would only need to put up their margin now. The CBOT thinks there are only someplace between 0 and 200,000 bushels available for delivery.
The question what happens in the market if someone has bought up all that non existent corn and wants delivery? | |
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CBOT question for trading experts
