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Cotton,,,,,,,recent price moves not good,,,,,,,
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RAB
Posted 3/10/2008 22:33 (#331067 - in reply to #329915)
Subject: Let me get this straight



Brinkley, Arkansas
So I am supposed to feel sorry for the merchant who buys my cotton and does not hedge the same purchase against the board (a purely speculative position). Equal and opposite was the first thing I thought everyone learned about hedging in their marketing classes. If this is how they do business why even bother buying the actual cotton from the farmer......all they've got to do is go long the board and they're essentially in the same position. They get no sympathy from me whatsoever.
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