Combinables Price Tracker

Brisel

Member
Arable Farmer
Location
Midlands
Agreed.. but my point was that it’s the speculative funds in the US that drive the market... it’s from nowhere else !!

I disagree. The speculators exaggerate market movements but they always come back to supply and demand. More players in the market add liquidity. The speculators will short grain futures as much as they buy long positions if they see a market under or over valued.

Longs have to sell eventually and shorts have to buy before the positions expire and they have to take delivery of or supply physical grain to futures locations. These provide opportunities for growers to trade.
 

WRXppp

Member
Location
North Yorks
I disagree. The speculators exaggerate market movements but they always come back to supply and demand. More players in the market add liquidity. The speculators will short grain futures as much as they buy long positions if they see a market under or over valued.

Longs have to sell eventually and shorts have to buy before the positions expire and they have to take delivery of or supply physical grain to futures locations. These provide opportunities for growers to trade.
Which is why oil went negative last spring because they had to move it before the option expired but there was no storage to take it.
 

teslacoils

Member
Arable Farmer
Location
Lincolnshire
Tbh I just want them gone now as I need the floor space to get the barley out of the bins. It's one more load than I thought I had. Although a £15 under wheat contract would have put another £10k in my pocket.
 

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