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Contributor

Insurance fraud

Does anybody else see it as odd that the price rallies during October, in the midst of harvesting the largest crop in years, and then it starts to drop in November? There should be an investigation into the possibility of manipulating the market in order to raise the insurance price, thus saving insurance companies billions of dollars. BTW the premiums are due in September so they have the cash to do it and it is our money they are doing it with!
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11 Replies
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Advisor

Re: Insurance fraud

The corporations that the Farm Bill was privatized to are 100% patriotic Supercitizens operating in a Free Market Directed By an Invisible Hand (God).

 

So absolutely no possibility whatsoever.

 

What are you some kind of a conspiracy theorist?

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Advisor

Re: Insurance fraud

Next thing you know you'll be telling us that da gubmint could do a better job.

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Frequent Contributor

Re: Insurance fraud

i have always wondered this same thing. haven't had time to check but if a person checked past market moves to when insurance sets prices there is probably a corrilation.

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Honored Advisor

Re: Insurance fraud

Investigators investigating themselves.
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Veteran Contributor

Re: Insurance fraud

Corn-Chart-1994-2014.png

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Veteran Contributor

Re: Insurance fraud

For the fun of it I charted October 1st through the 31st for the last 20 years.  Not much variation in the prices,  although it seems there are more years with positive price movement than not.  2008 price dropped from 4.84 to 4.01 over the month.  

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Advisor

Re: Insurance fraud

I hope the market makes them pay by working against them. I hope they have hug margin calls to pay.
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Advisor

Re: Insurance fraud

I have to agree with buck. If (and that;'s a big IF) they were really using the cbot to affect their potential insurance liability, would they lose the corresponding amount on their futures contracts??

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Advisor

Re: Insurance fraud

OI declined during the rally and the only trader category that rose was Large Specs so if somebody was up to something they'd have had to be tricky enough to run it through different accounts.

 

So I'm inclined to think it i just an case where the market was very short, harvest got slowed down and with good demand a shortcovering bounce took off and then fed a bit on itself.

 

Now I suppose we could go back to da gubmint and say that they gave us numbers that were too bullish in  October in order to encourage susch a move.

 

But I'm inclined to think they merely had an insufficiency of new data as of Oct 1 given late maturity and slow harvest and that we'll probably see a modest increase in Nov.

 

If they blow us away with big numbers then I'd be willing to revisit the matter.

 

 

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