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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: shades who wrote (63259)6/10/2006 2:25:15 AM
From: mishedlo  Read Replies (2) | Respond to of 110194
 
Good question.
Please remember that gold producers will ALWAYS be net short gold.

Consider for a second corn. Will farmers EVER in 100 million years buy corn futures? Once maybe?

I look at speculation in hedge funds and the average joe for a clue. The BIG MISTAKE people make is thinking commercial shorts will "have to cover". That is bullshit.

It is like saying farmers will have to buy corn.
Now is it possible for commercials to be long corn?
Yes it happens.
Is it farmers?
No.

It is corn flake producers like Kelloggs willing to lock in a good price when they see it.

This make sense?
Mish



To: shades who wrote (63259)6/10/2006 3:06:50 AM
From: ild  Read Replies (1) | Respond to of 110194
 
There is a substantial difference in commodity futures and financial index futures. In commodity futures commercial hedgers often sell futures to hedge future production. It's very different in financial futures as no one "produces" them.


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