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NW Indiana | I'm not suggesting at all that crop insurance companies do anything in October to move price. They cover exposure, that is often done in the last few days of February but also throughout the season. Market makers do use futures to offset their exposure to options that they sometimes have to take when providing liquidity. So do MM have incentive to move price? Absolutely but I still don't believe that has much to do with October. Markets are most often moved by the psychology of the participants, October has very common seasonals that most participants are aware of. I would be more in the camp price movement in October that is often labeled as an insurance rally has more to do with those seasonals rather than actual crop insurance companies influencing price. | |
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Insurance price
