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elcheapo
Senior Advisor

we'll beat them at their own game


Well did some thinking....

Why can't there be another board of trade ?

We used to have mpls and kc. Now only
Have one.....and all markets are owned
By the same bunch.

Since the market (chi) are so crazy about
Open market......why not have another
one ?

Just why can't you have one ? You
Are just a market place.
I think it would be great...offer major
Grains....and add some new ones.
Add a Milo and sunflower Contract.
All offer the mini....offers market
Participation at lower price point.
You could make it possible for new
And young brokers to start a business,
No more $1 million for a seat on the
Board....this could really make some
Real economic boost, new jobs.
Also area market participants would
Perhaps use rather than the disconnected
Cme.

How can this be done ? I know Koch down
The road has something similar. They
Were in the wx market.

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6 Replies
giolucas
Veteran Advisor

Re: we'll beat them at their own game

Who will control your new market, Farmers?  Here comes record prices, no matter what the production is.

 

Maybe what we need is limits on the number of contracts traded,(this will help decrease the high frequency Trades committed by computer programs),  also, increase the initial margin to trade each contract and  penalities for collusion by the big firms.  In addition, since sales (orders) are tied to the markets, there is no such thing as canceling an order.  If someone does not pay or accept an order previously ordered then they cannot get any future orders until their committment is fulfilled.  I know China is our number one customer and that would be very hard to implement considering there are other countries bidding for their business.  

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timetippingpt
Honored Advisor

Re: we'll beat them at their own game

There hasn't been any evidence of wrongdoing has there? I haven't heard of one instance. It is raining in IA in late July and you think the market should go up or stay stable? Why?

 

The investment funds (swaps dealers) have been LONG about 1.3 Bil bushels this entire year and still were last week. There might be additional price weakness if you guys force them out of the market 🙂

 

Sure, you will not appreciate my questions, but I would love to find some wrongdoing to blame for normal market action.

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cyclonegrain
Veteran Contributor

Re: we'll beat them at their own game

So elcheapo, if I am reading between the lines correctly here you are mad because you didn't sell and the USDA screwed you and the CBOT traders are crooks?  It doesn't matter if you agree with the USDA numbers, that is what gets traded.  More acreage and now rain and we go down?  Until the acreage or yield is proven wrong this perception is the reality.  I think the harvested acreage number will be lower and the trend line MAY be lower when all is said and done, but when an inverse "pops" and end users either get coverage or think they do then basis collapses.  If the market wouldn't have took a dump the remaining old crop would not have moved.  Obliviously, nobody would sell at the measly price of $7.00 but $5.60 and it gets priced?  Take responsibility for your decisions, blaming the USDA or the CBOT or the local elevator for not overpaying basis wise is sad. 

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BA Deere
Honored Advisor

Re: we'll beat them at their own game

If farmers aren`t happy with the CBOT, there`s nothing stopping them from going right to the Chinese and selling their grain F.O.B. from Iowa.  Or more practical, selling direct to a local feed mill.  We`ve had over $7 corn since last fall, what more does a person want?  Even now corn is $5.65, I`ve probably sold more corn under $2.50 than I have over $5.  We need to face it, the music stopped this week and some were caught without a chair.

 

The market somewhat has a "rythm"   harvest lows come before harvest actually begins.  End users, schedule "cleaning the pipes" in late summer, living off the cheap corn that they bought a year ago, quitely buying cheap corn that will be delivered next year at this time.  It has seemed selling off the combine is hard too beat, if someone wants to gamble, take that money to Vegas.

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kraft-t
Senior Advisor

Re: we'll beat them at their own game

The bulls will not admit their error until they are forced to do so. Will $4 corn do that or will it require $3 corn to change their mind. I wonder how many are buying new crop calls betting on the come.

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jennys_mn
Veteran Advisor

Re: we'll beat them at their own game

When corn was $3.00, seed wasn't $300.00 for 80,000 kernels. Tractors hadn't doubled in price in 5 years. Fertilizer wasn't 600 to 800 à ton. Some farmers with a good crop can sell it for $4.00 and maybe make some profit. If farmers aren't selling, maybe there's a reason, or multiple reasons they aren't. I think it's pretty well a given now that there is not a 14bbl crop out there. What there actually is will be determined over the next month or two.

Jen
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