Who Makes Money On Volatility?

[agstar77]

Conagra spinning off trading division , to Hedge funds along with food merchandising arm. They supply chips to McD's. Selling for 2 B. They claim the volatility has made them money, not actually producing anything, just the volatility.

[parsley]

Kudos if companies don't lose money during volatility. Risk can bring rewards.

The Wheat Board quips that it arms itself with a single desk to fight off volatility. How's that working?

Farmers will be recieving heaps of money with that strategy, right?

Parsley

[agstar77]

Farmers have been receiving cheques that won't bounce.

[parsley]

Doesn't sound as if Conagra's cheques were bouncing either.

Kaching
Kaching

Do the CWB farmer-cheques kaching during volatility?

Or is it just enough for momma to pay the utilities?

Do CWB farmer-cheques EVER kaching?

CWB employee cheques kaching every month.

Yes they do.

Parsley

[agstar77]

That's Ka - ching. Actually Conagra stock chart was pretty bad until just recently. One of their reasons for selling is to repay debt.

[jensend]

volatility is an opportunity as has been pointed out before. it's also a way for the big funds to relieve small investors or hedgers of their capital by pushing the market so far before correction that margin calls get impossible as we've seen in the last month or two. commodity trading is a zero sum game - overall profits equal overall losses. that's different from the stock markets. yesterday on bnn the grain trader they interviewed said this last rally has seen very little end user pricing so it's almost all spec. money moving in and hoping others will jump on the bandwagon. it also indicates end users are either covered or the prices are beyond what they see as fundamental value.

[parsley]

Thanks. I'll leave you to dwell on the dash.

Meantime you said Conagra heaped up piles of cash during volatility.

Did the CWB also heap up piles of cash in comparision to other years?

Parsley

[agstar77]

"It seems there is a growing consensus that futures and agricultural cash markets are in disconnect. Price volatility and uncertainty will undoubtly trickle down to the lowest common denominator. Even Martha Stewart would agree it's not a good thing for Farmers". Now who said that? The volatility belongs to the farmers who are smart enough to contract outside the pool. Good for them.

[parsley]

Farmers have to ask this question:

"How do I get more wheat and barley money out of the marketplace?"

The CWB is not getting enough for farmers, even though CWB staff dine on greenbucks-delight.

[parsley]

Don't know who said that, btw. I googled it and got nothing.

Volatility can be a normal part of the free market and eventually tames.

[Fransisco]

Personally I love the volatility.

Here is the way I look at it, the opportunity is in the variance.

[agstar77]

L Weber said it.