Musings On The True Reason For The CME's Increase In Daily Corn Trading Limits

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Tue, 04/26/2011 - 17:58 | 1209322 the mad hatter
the mad hatter's picture

what a corny reason

Tue, 04/26/2011 - 19:30 | 1209588 disabledvet
disabledvet's picture

for a corny season no less.

Wed, 04/27/2011 - 00:33 | 1210224 Dr. Porkchop
Dr. Porkchop's picture

Too much corn in the hole and it's your ass.

Tue, 04/26/2011 - 19:37 | 1209606 SheepDog-One
SheepDog-One's picture

And of course margin limits are NEVER considered for equities. Or bonds. Thats all done behind the curtain and shall not be infringed upon.

Tue, 04/26/2011 - 21:20 | 1209831 bigelkhorn
bigelkhorn's picture

commodities went a bit silly today, but i think 1400 On The S&P Coming? 

Tue, 04/26/2011 - 17:59 | 1209342 America- Some A...
America- Some Assembly Required's picture

We are so fucked. Too bad we can't eat this fiat paper that Burnacountry is showering upon the world.

Tue, 04/26/2011 - 20:20 | 1209718 JPDG
JPDG's picture

Cornbread, bitchez! 

Wed, 04/27/2011 - 03:57 | 1210392 Sudden Debt
Sudden Debt's picture

If only he printed the dollar on rise paper...

 

Tue, 04/26/2011 - 18:02 | 1209347 SilverDoctors
SilverDoctors's picture

APMEX Now Out of Silver Eagles AND MAPLES, Until May 27th!

http://silverdoctors.blogspot.com/2011/04/apmex-now-sold-out-of-silver-e...

Tue, 04/26/2011 - 18:58 | 1209511 Long-John-Silver
Long-John-Silver's picture

Earlier today when I BTFD the only product Apmex had for immediate delivery was the Scratch and Dent Industrial Silver. I bought all of it. Everything else depended on delivery in the future. No thank you. It could be weeks, months, or delivery not possible.

Tue, 04/26/2011 - 19:13 | 1209544 tmosley
tmosley's picture

I assume you mean in the 1oz denomination, because they've got plenty of 5oz and larger stuff (no COMEX bars, though), most for immediate delivery.

Tue, 04/26/2011 - 19:17 | 1209551 hambone
hambone's picture

I ordered 20 APMEX 5 oz bars last week and they have a tentative ship date as of now of 5/2...not so immediate???  I haven't had a delay like this prior to now.

Tue, 04/26/2011 - 22:27 | 1209990 tmosley
tmosley's picture

Did you pay by personal check?  That takes 10 business days to clear.

Wed, 04/27/2011 - 02:07 | 1210335 hambone
hambone's picture

Yup paid by check (always do) but d-checked and looks like only a couple more days than usual.  Mehhh.

Tue, 04/26/2011 - 19:38 | 1209609 SheepDog-One
SheepDog-One's picture

What a farce longjohnsilver, 'PM's have topped out' yet theres none or only junk available to buy, yet the price drops. These arent markets its an asylum.

Tue, 04/26/2011 - 18:05 | 1209371 gkm
gkm's picture

As I said before on ZH, the next group to be bailed out will be the farmers from their hedges.

Tue, 04/26/2011 - 18:17 | 1209416 mynhair
mynhair's picture

Screw margins, just use real BennieBuks.  They come free with each box of Trix.

Tue, 04/26/2011 - 18:23 | 1209417 Dejean Splicer
Dejean Splicer's picture

To da moon baby! And yes you can eat it.

Put some in the ground today.

Tue, 04/26/2011 - 18:22 | 1209419 evrdetermined
evrdetermined's picture

and what is the Zero Hedge position on the Michael Masters opinion of significant speculation in these consumable commodities?  I have been persuaded (in a non-stakeholder kind of way) that financial institutions are the ones pumping capital into futures markets, not farmers.  (to address the comment by gkm)

Tue, 04/26/2011 - 18:32 | 1209430 hambone
hambone's picture

Anybody notice DXY is now taking aim at all time lows - just went through 73.55...not real auspicious

Does this mean we should be looking for another Yen flash crash in near term???

Tue, 04/26/2011 - 18:55 | 1209495 topcallingtroll
topcallingtroll's picture

Maybe go long the dollar and play a temporary bounce?

Tue, 04/26/2011 - 18:59 | 1209514 Long-John-Silver
Long-John-Silver's picture

I think we just had the temporary bounce.

Tue, 04/26/2011 - 21:28 | 1209845 topcallingtroll
topcallingtroll's picture

That was it?

Like my first girlfriend used to say.

Tue, 04/26/2011 - 19:39 | 1209612 SheepDog-One
SheepDog-One's picture

I hadnt noticed hambone, but what a disaster.

Tue, 04/26/2011 - 18:26 | 1209434 Robslob
Robslob's picture

I don't really see your average farmer hedging jack shit...mainly because he is actually working all day?

Money people are evil...because they have no value and know it...

Tue, 04/26/2011 - 18:41 | 1209467 topcallingtroll
topcallingtroll's picture

Your average farmer always hedges. Selling forward and locking in a.guaranteed price requires derivatives, the spawn of satan but a farmer's lifeline.

Tue, 04/26/2011 - 20:16 | 1209711 TheDriver
TheDriver's picture

Farming and hedging have gone hand in hand for centuries. It was one of the (many) sources of Jefferson's debts.

Tue, 04/26/2011 - 18:27 | 1209440 max2205
max2205's picture

Limits should be done away with but taxed like crazy

Tue, 04/26/2011 - 18:32 | 1209442 buzzsaw99
buzzsaw99's picture

the manipulation will continue until confidence is restored.

Tue, 04/26/2011 - 19:29 | 1209591 disabledvet
disabledvet's picture

indeed.

Tue, 04/26/2011 - 19:40 | 1209616 SheepDog-One
SheepDog-One's picture

The beatings will continue until morale improves and worship is directed towards the ChairSatan.

Tue, 04/26/2011 - 19:52 | 1209649 KickIce
KickIce's picture

or until there are actual shortages.

Tue, 04/26/2011 - 18:36 | 1209454 Sutton
Sutton's picture

No limits on Coffee and Sugar futures.

Man up grain boys

Tue, 04/26/2011 - 18:43 | 1209472 topcallingtroll
topcallingtroll's picture

Grain and orange juice boys are girlymen.

Tue, 04/26/2011 - 19:30 | 1209593 disabledvet
disabledvet's picture

absolutely not.  but as a man still looking for a free market "this is a good start."  surprising, actually.  of course "it will result in an immediate increase in price."

Tue, 04/26/2011 - 18:44 | 1209470 scratch_and_sniff
scratch_and_sniff's picture

Huge run on euro stops there, shorted 1.4705...off to bed, wake me when im rich.

Tue, 04/26/2011 - 18:50 | 1209488 topcallingtroll
topcallingtroll's picture

Good call i hope.

I am just dollar, vde, and ewz in my spec money.
I am looking for a breather cuz i dont know what to do now.
Oh yeah...still own BIDU that i documented buying at 145 ish a while back. But i did that just to piss off mosely and sheepdog.

Hell. Maybe its time to quit speculating, put it into a diversified mutual fund and just hang out with my harem.

Tue, 04/26/2011 - 19:31 | 1209597 disabledvet
disabledvet's picture

well there is that speculative play called "General Electric."  By all means "go hog wild on that dog" if you wish.

Tue, 04/26/2011 - 18:48 | 1209480 bob_dabolina
bob_dabolina's picture

Can someone just raise my taxes already?

Tue, 04/26/2011 - 18:49 | 1209482 SWCroaker
SWCroaker's picture

Jeez, if you are going to have any sort of limit, at least instantiate it as a percentage change, that way the limit automatically keeps track with inflation, which is kind of the root cause of the problem, isn't it...

Tue, 04/26/2011 - 18:58 | 1209507 topcallingtroll
topcallingtroll's picture

If limits and margins were rational and predictable they couldnt be used to benefit insiders.

Tue, 04/26/2011 - 19:36 | 1209603 disabledvet
disabledvet's picture

And Gary Gensler is a "free market conservative."  The squid incarnate.

Tue, 04/26/2011 - 19:10 | 1209542 Racer
Racer's picture

All this banksters, supermarkets, ebaying, it all a middle corporation suck the  profits from both sides con to get them to shake hands

They have become too greedy, I am seeing every day that people are not taking part in money transfer as in do something for me and I will do something for you.. or I will give free stuff so I can get free stuff

Society is undergoing a VERY radical shift and it would not have happened if the chairsatan just didn't just gone an got greedy about how gud he wus... he jus got stoopider

Tue, 04/26/2011 - 19:33 | 1209595 lolmao500
lolmao500's picture

In other news, the dollar is sinking. 73.60!

Tue, 04/26/2011 - 19:34 | 1209604 hambone
hambone's picture

low so far of 73.48...funny dollar would tumble absent QE3???

Tue, 04/26/2011 - 19:47 | 1209642 lolmao500
lolmao500's picture

Or insider trading saying that Ben will announce QE3?

Tue, 04/26/2011 - 20:22 | 1209719 Bear
Bear's picture

All risk assest 'drift up' before announcements ... the bulls are afraid they will miss the big announcement move and this is the biggest announcement of them all

Tue, 04/26/2011 - 19:48 | 1209636 bob_dabolina
bob_dabolina's picture

just....wow

Tue, 04/26/2011 - 19:48 | 1209644 youALREADYknow
youALREADYknow's picture

Shouldn't the best trade in the market then be to simply buy front (or next) month deep OTM calls since the probability of the price reaching extreme levels goes up with trading limits increasing?

I'd imagine the implied volatility would spike on those options if such a decision were made which makes the options price appreciate accordingly. If IV doesn't actually spike, then you technically just bought an undervalued option and it was still a wise decision to make.

Tue, 04/26/2011 - 20:10 | 1209700 Josh Randall
Josh Randall's picture

Cotton, Corn, Silver - this is how the West was won originally and may be again - Go Long Boys!

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