Oh for crying out loud - you know all that.
If you are in desperate need of soy beans - you would like to buy some. You can buy the beans - the transport of the beans, the packaging of the beans, the handling of the beans, fees for this and that inbetween - but you are not finished with that - you also have to purchase a certain amount of options in advance - because if you don’t maybe the chineese come along and buy them on the day you need them for a really ridiculous high price - that’s because they got to get rid of their greenback (see the actions of the fed today to know why)
So you have to buy options because you do want to tell those who give you the money to opperate your business how you manage your risks - otherwise they go elsewhere.
So these options are ment as an insurance. Only this insurance is traded on high volume in a highly inflational way by hedgefonds and institutions who don’t need the beans as such nor do they need a beanpriceinsurance (please forgive me my german tendcy to merge words)
So each and everyone in the soy bean dealing business is certianly not dealing with your 2 dollars back and forth - to purchase beans you got to pay more then the beans.
Of course your national monkey for calculating a fake but accurate rate of inflation will only account for the price of soy as such. But that’s not relevant anymore for business. It’s the TOC of the bean that matters :)
But hey - you DO know that. How’s your BOA stocks today ?
(Sorry I was in that mood)
ahh for pete’s sake the TCO not the TOC - but hey I am taking away your fun - so you go on...
How’s your BOA stocks today ?
It's up.