mcdon - agreed on the commercial content.
My point about the prop traders not caring about delivery was to underscore the point that futures users don't look at futures as a means of procuring cash grain. At least the smart ones don't.
One iteration of the barley futures contract failed because delivery was too attractive. It became a cash forward contract - most of the OI ended up in delivery making it impossible for the hedgers and specs to get out through liquidation. Maybe that's the version Errol mentioned. I can't recall but it may have been the one called Alberta Barley (instead of Western Barley).
My point about the prop traders not caring about delivery was to underscore the point that futures users don't look at futures as a means of procuring cash grain. At least the smart ones don't.
One iteration of the barley futures contract failed because delivery was too attractive. It became a cash forward contract - most of the OI ended up in delivery making it impossible for the hedgers and specs to get out through liquidation. Maybe that's the version Errol mentioned. I can't recall but it may have been the one called Alberta Barley (instead of Western Barley).
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