Registered: Jun 2011
08-19-12 10:23 PM
no kidding, these farmers would come in to the "commodity office" as they called it in their overalls, claiming they were doing business, when in fact almost all of them went out long with a promise from me to "not tell their wives" but the few that actually do hedge usually prefer the puts.
Quote from sle:
Actually... unlike miners, most farmers (producers of aggs) go long - ergo they buy calls or buy futures. "I will leave it to the reader to work out" the reasoning why, but it's pretty counterintuitive at first and very intuitive once you think about it.