CME wants some of the IG pie

[arabianights]

thankfully neither serves a decent bitter so i avoid both like the plague. then theer's the clientele....

I smashed the door in the ABO on finsbury pavement once, but yeah I agree both full of ******s... corney even worse I think...

 

[arabianights]

Yes it is.

Futures markets in general do not do what they say on the tin.

Overall, Wheat producers, wholesale buyers and retail buyers all SUFFER because of the futures markets, they do not benefit. People that hedge now do so because the futures markets have made it necessary to hedge.


Should we discuss the price stability the futures markets brought to oil ?

Ultimately, futures markets suck money out of industries which the financial industry would otherwise have very little involvement.

Which is why the larger companies hedge OTC... which the bank will then manage in the futures market...

 

[DionysusToast]

I don't think it matters how you play the game, AN - it's the game that forces you to play.

Actually, the point is that Futures markets create the need to hedge in non-financial markets.

Why do cattle & pork producers need to hedge? What about sheep & chicken farmers?

Why wheat & corn but not barley?

Remember - this isn't insurance we are talking about - insurance is needed for crop failures, futures don't help if your crop fails or your pigs die. Futures are supposed to protect you against about price fluctuations but they are the cause of fluctuations.

Is there anyone here that thinks Oil prices are more stable because of the futures markets?

 

[meanreversion]

What would the price of gold, silver and oil be if every single speculator were taken outside and shot right now and their positions forcibly liquidated?

 

[meanreversion]

Gold below $800 I reckon, oil around $50 .. ???

 

[tar]

I don't think it matters how you play the game, AN - it's the game that forces you to play.

Actually, the point is that Futures markets create the need to hedge in non-financial markets.

Why do cattle & pork producers need to hedge? What about sheep & chicken farmers?

Why wheat & corn but not barley?

Remember - this isn't insurance we are talking about - insurance is needed for crop failures, futures don't help if your crop fails or your pigs die. Futures are supposed to protect you against about price fluctuations but they are the cause of fluctuations.

Is there anyone here that thinks Oil prices are more stable because of the futures markets?

BTW there is barley in the ICE but no volume :

https://www.theice.com/productguide/ProductDetails.shtml?specId=5

 

[DionysusToast]

What would the price of gold, silver and oil be if every single speculator were taken outside and shot right now and their positions forcibly liquidated?

let me know - I'm going to short Gold right before you do this.... :whistling

 

[DionysusToast]

BTW there is barley in the ICE but no volume :

https://www.theice.com/productguide/ProductDetails.shtml?specId=5

Aaaah - OK then.

Peanuts anyone ?

 

[Dommo]

Yes it is.

Futures markets in general do not do what they say on the tin.

Overall, Wheat producers, wholesale buyers and retail buyers all SUFFER because of the futures markets, they do not benefit. People that hedge now do so because the futures markets have made it necessary to hedge.


Should we discuss the price stability the futures markets brought to oil ?

Ultimately, futures markets suck money out of industries which the financial industry would otherwise have very little involvement.

I thought it was clear that I was talking about weather derivs, not traditional futures.

When a wheat producer buys a weather derivative (however remotely, and however the product may be structured), he is not gambling - he is insuring against losing the farm as a consequence of inability to deliver.

Trading wheat futures, whether to lock in a price or speculate, involves a different risk -price, and a wheat producer is at liberty to lock in or speculate on price (assuming he can deliver).

Your assertion about futures markets introducing vol is perfectly plausible, but you are talking about a different market to rain derivatives.

 

[tar]

Aaaah - OK then.

Peanuts anyone ?

As we all know not all the hedging goes through the futures market , u can hedge OTC " Non-deliverable forwards for example " , dont know about the peanuts though but i dont think it is important as corn and sugar ...