[lbo-talk] Food Prices Again

Doug Henwood dhenwood at panix.com
Thu Feb 17 10:03:02 PST 2011


On Feb 17, 2011, at 11:31 AM, Michael Pollak wrote:


> Let's say the price for wheat today is $10 a bushel. The futures price 6 months hence is $14. Arbitrage would mean that farmers or dealers store the wheat and sell it later. In that case inventories go up.

Why sell it later? Sell it now.



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