[lbo-talk] Food Prices Again

[Doug Henwood]

On Feb 16, 2011, at 5:33 PM, Jordan Hayes wrote:


> You don't get a margin call if you're going to deliver.

Farmers who hedge can get creamed. See p. 49:

http://hsgac.senate.gov/public/_files/REPORTExcessiveSpecullationintheWheatMarketwoexhibitschartsJune2409.pdf

Grain elevators too.

Also, the failure to converge hurts farmers and elevators, but that's another story.

Doug