MGEX Agricultural Index Contracts.

Discussion in 'Ag Futures' started by kanellop, Sep 2, 2009.

  1. kanellop

    kanellop

    Hello.

    I want to say, that in the Minneapolis Grain Exchange:

    http://www.mgex.com/ ,

    exist some Agricultural Index Contracts.

    My Major Issue is, if someone have an opinion, why these Indices have a tremendous Low Volume (almost No Volume).

    Best Regards,

    George Kanellopoulos.
     
  2. mgex locals refused to support the market (back when there was a pit) they were afraid that it would eventually kill their HRS futures contract.

    Those index contracts are a GREAT idea but its just so hard to get people to trade something when the liquidity and volume aren't there (nobody wants to be the first guy to start trading them) If they could ever get decent liquidity I think they would prosper!
     
  3. reminds me of the old CME fertilizer contracts....great idea, but when your people (local traders) shun it, it ain't going anywhere
     
  4. 1) The problem with any average is the proper computation of and dissemination of the "number".
    2) Those contracts, similar to the CME Real Estate contracts, aren't such a good idea because grain pricing is location-specific and quality-specific. Nobody has "average" grain that mimics the "average". The average doesn't have to converge to your non-average grain.
    3) The average number of children in a family may be "two point whatever" but there are no families with that exact, precise number. 2 children, yes. 3 children, yes. 2-point-whatever, NO.
    4) In Minnesota, there is a "Lake Wobegon Mentality" where everyone believes that they are "above average".......:cool:
     
  5. I don't think this argument is necessarily applicable to the ag markets....using your same reasoning about location specifics, then the actual traded price of corn/wheat/bean futures is all a farce....simply because very few locations are par bid on the corn price.

    Not only is there regional differences in basis, but location to location differences....I think the only "standard" you can have in the ags to base everything around is quality...which is how they are based. everything else is subject to varying factors.
     
  6. Mnphats

    Mnphats






    LOL. I think we are "above average." :D :cool: :D


    But then again we voted in Jesse the Body and Franken. :confused: :confused:
     
  7. JPope

    JPope

    I used to work in the MGEX pit. We would just laugh when people would call about those contracts, or worse, try to trade them...The exchange had found someone to make a market for them but I think that fell through also.
     
  8. kanellop

    kanellop

    Hello.

    I read very carefully your Message.

    Let me ask you:

    1) Why the Insiders there, laugh when someone ask for them and try to trade them ?

    2) Why do you believe, that if someone create a Market for them, will not have Success ?

    Kind Regards,

    George Kanellopoulos.
     
  9. kanellop

    kanellop

    traderTX Hello.

    I had receive an E-Mail Message in my E-Mail Box, that you had reply to this Thread.

    Your Message i had not see it, i do not know why.

    Exist chance to put it again here ?

    Thank You.

    Kind Regards,

    George Kanellopoulos.
     
  10. George...I replied days ago...check the first page. other than that I'm all talked out! haha!
     
    #10     Sep 22, 2009