Death comes to us all. Life's but a walking shadow | Pitt, you're correct as long as the market stays up. One sign of the possibility of manipulation is if the market quickly declines to the old lower level. Besides, you're thinking like a trader not a farmer. I suspect that if you actually knew how few farmers buy and sell the board in any fashion you would be surprised. In fact we know it's the case. For instance if you take all of the commercial shorts for last week which is the proper category for farmer hedges it was a little less than 600,000 contracts. This amounts to less than 3 billion bushel of corn from a crop of 14 billion. But we know that the vast majority of that commercial short is merchant hedging of either purchased, delivered or undelivered. That still leaves 11 billion bushel yet to price.
You might ask, "Why don't farmers sell the board on a rally?" The answer, " We've been there, done that and we know how that works out for us." |
Incentive for Market Manipulation
