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To: Sequoyah101

The futures market was set up for hedgers and speculators. I think there is one hedger there.

The reality is hedgers moved to contracts to lock in costs and sales prices.


11 posted on 05/19/2022 12:47:28 PM PDT by PeterPrinciple (Thinking Caps are no longer being issued but there must be a warehouse full of them somewhere.)
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To: PeterPrinciple

Producers have tried hedging and contracts to level their income but many times when they do they have regretted it.


12 posted on 05/19/2022 12:59:01 PM PDT by Sequoyah101 (Politicians are only marginally good at one thing, being politicians. Otherwise they are fools.)
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To: PeterPrinciple

Your comment did not blow by me. Yes, contracts easier than hedges, speculator world. Nymex ran out of arbitrage on maine potatoes so they created a new playpen and mucked up the works.

Energy’s long cycle times got really messed up by futures trading. Not suited to long cycle time tems. Should have never happened.


13 posted on 05/19/2022 6:50:10 PM PDT by Sequoyah101 (Politicians are only marginally good at one thing, being politicians. Otherwise they are fools.)
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