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Politics : Politics for Pros- moderated

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To: Katelew who wrote (413236)2/26/2011 10:09:59 AM
From: Murrey Walker1 Recommendation  Read Replies (1) of 793914
 
Kate, I think packers (food processors) trading commodity futures, and the street doing this, are two different animals.

The packers (and farmers for that matter) buy future contracts to the extent that they protect their price fluctuations as much as possible, and to this end, they differ from the pure investment strategies used by the street to generate income on those transactions.

Obviously there are exceptions to the rule, but, by and large, food processors are in the business of filling the food pipeline and keeping price fluctuation to a minimum.

To me, that's a big difference. It all depends on which game you're playing, doesn't it?
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