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NE Oregon | Jim, you are a little off base. You reference the “thin trading” as a problem. Requiring buyers to take delivery would exacerbate that problem. You reference how “a few gamblers can get in with with large positions and move the market” that may be true, but the market moves back as they try to unload those large positions. So your assertion that they can just make so much money doing whatever they want isn’t exactly the truth as you claim so boldly. Additionally, it is the seller of futures who declares that they will deliver. So forcing those buyers to take delivery can happen, but it requires feeder short hedgers to exercise that function to their advantage.
A real help could be more delivery locations around the country and education to feeders on how to make delivery so that the relationship between cash and futures stays closer.
There is more here but I am choosing to go out and do more productive things than to continue this.
Jim, you are a sharp guy, you know physics, you know grass fed beef production and customer direct marketing and you are a great advocate for your Hereford cattle. You have some study to do on futures markets and the cme, and that is ok to have some shortfalls, so long as we can all be humble enough to recognize those areas in ourselves. | |
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It seems to me that the futures market on cattle should go away...
