If chuckChuck is still out there....
Looking for something else, I stumbled on something that Chuck should be interested in. It goes to his theory that the US market is somehow a "price island" where the domestic prices do not reflect offshore prices.
I'm parphrasing it to keep it short and focused....
"Kansas State University agricultural economist Daniel O’Brien ... and colleague Art Barnaby, who is a risk management specialist – both with K-State Research and Extension – agree that the cash HRW wheat prices have been reflecting <b>the real market value of wheat – the export value plus transportation costs to bring it to port, in competition with the value of HRW wheat processed by U.S. millers for domestic food consumption.</b>"
Yes Virginia, there really is arbitrage.
Looking for something else, I stumbled on something that Chuck should be interested in. It goes to his theory that the US market is somehow a "price island" where the domestic prices do not reflect offshore prices.
I'm parphrasing it to keep it short and focused....
"Kansas State University agricultural economist Daniel O’Brien ... and colleague Art Barnaby, who is a risk management specialist – both with K-State Research and Extension – agree that the cash HRW wheat prices have been reflecting <b>the real market value of wheat – the export value plus transportation costs to bring it to port, in competition with the value of HRW wheat processed by U.S. millers for domestic food consumption.</b>"
Yes Virginia, there really is arbitrage.
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