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R640

Posted by redneckokie1 @ 22:26 on October 23, 2014  

Back in the 1980’s, I had a commodity brokerage and feeder cattle were deliverable in Amarillo and Oklahoma City. My customers had hedged and planned to deliver their feeder cattle since the board was $2.00+ higher than the cash market. Someone was always doing a short squeeze on the March feeders so we started selling late in the trading month. We had 13 contracts hedged and the action heated up in the last week of trading . On the last day of trading, we had a total of 25 contracts on by the close. We had all the cattle in position on the first notice day.

i got a call from a dentist in New Jersey asking my what I thought I was doing. I thought maybe something was wrong with the cattle. He was really irate and wanted to know what his group was going yo do with 25 loads of cattle in Amarillo and Oklahoma City. I told him he bought them for some reason. Maybe he should confer with his group. Within 60 days, feeders went to cash settlement.

rno

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Post by the Golden Rule. Oasis not responsible for content/accuracy of posts. DYODD.