[lbo-talk] Markets and the tooth fairy - Orange juice futures

Doug Henwood dhenwood at panix.com
Sat Aug 2 16:45:42 PDT 2003


Michael Pollak wrote:


>Well that was a pretty monumental and embarassing misreading on my part.
>But now I have a different question: what does daily temperature variation
>have to do with the eventual OJ yield? I understanding how the average
>seasonal temperature would affect yield. But isn't day to day variation
>completely irrelevant to eventual yield?

You're not thinking like a trader. If the temp is 5 degrees colder than the NWS predicts, that's a shock to expectations, and someone can make money on it.

Doug



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