Saudi's Wheat production dries up.

[sumdumguy]

Kansas City wheat 2008 was $13.00, now $5.00 - why?

[farming101]

[URL=http://photobucket.com/]/URL]

As you can see volumes shown in the columns at the bottom are much higher beginning in 2008 when the whole world got pumped and dumped.

Greed, computers and High Frequency Traders are some the reasons.

Since 2008 I really don't see a large increase in volume for Chicago Wheat.
It is the go to North American wheat contract for international traders. So they could be trading any type of wheat from anywhere in the world and they choose to use CBOT to hedge. My guess anyway.

[farming101]

There is a steady increase in volume since the 2008 hangover.
June 2015 activity the highest since November 2007.

[farmaholic]

Okay now the golden question, and why the significance. Trading shit that doesn't exist? Everyone else making money on speculation?(Ya I know I can participate and am a speculator myself on a different level). Money moving around looking for a return.

[farming101]

I guess that is why it is a futures contract. Delivering on a futures contract is another story.

What I have a problem with is all the debt that has been bundled up and sold so that someone can profit today on debt repayment that shouldn't happen for decades. Criminal.

[farmaholic]

Pardon my ignorance but did you just describe a derivative?

Sometimes it is better to keep one's mouth shut and be thought ignorant than to open it and remove all doubt...

[farming101]

Yes, sorry. It is tough to think, type and be clear.
<a title="Derivatives" href="http://www.investopedia.com/terms/d/derivative.asp">Derivatives</a> - hate em.

No wonder Las Vegas is in a downturn.

[cottonpicken]

If you didn't want the world to spin out of control with money printing you would probably want to stop gap the commoditie futures and if you wanted to do that you would create a lot of paper and hold a few billion bushels that you could dump if you needed to control something.

[farmaholic]

Years ago I remember my "financial advisor" fancy title for "salesman" talking up the derivative market. It was happening then already. It spooked me.

Cotton, so when does the house of cards collapse? You shouldn't be able to trade paper and have no threat of having to deliver or take delivery. Why the **** have things been allowed to evolve to this point.

Paper is worthless without something physical to back it up???????

Be patient with me.

[farming101]

When I hear of paper commodities I think of the people who took their worthless stock certificates and wallpapered their house.