4 ms·

I'd love to hear from someone that got stuck with the 1000 bushels of corn (or similar). What do you do? How in the world do you manage that?

draw_down 6y ago
I remember this happened once, to someone who bought cocoa on the commodities market.
lozaning 6y ago
There's a story online thats floated around for a while about a guy that ended up with like 10 tonnes of coal this way. Was delivered via barge somewhere if I recall correctly. Edit: finally found it: https://thedailywtf.com/articles/Special-Delivery https://thedailywtf.com/articles/Special-Delivery
whatok 6y ago
John C. Hull - Options, Futures, and Other Derivatives has details on an accidental cattle futures physical settlement. https://www.passeidireto.com/arquivo/73586616/john-c-hull-options-futures-and-other-derivatives-pearson-2017/19 https://www.passeidireto.com/arquivo/73586616/john-c-hull-op...
koheripbal 6y ago
There are services you can call to help you out of this predicament. Obviously they charge a huge margin.
bluGill 6y ago
Worse it isn't 1000 bushes at your home it is at some transfer point several states away. If you are lucky it is an elevator that sends you a bill for storage and can unload them. If you are unlucky you need to get a truck (with a driver) there on short notice to get it out of there.
- lonelappde 6y ago
  What if you just don't? You probably just get a larger bill.
  - pas 6y ago
    Sure, but that can become a very big bill fast. Basically they can charge you (almost) whatever they want.
cecilpl2 6y ago
https://thedailywtf.com/articles/Special-Delivery https://thedailywtf.com/articles/Special-Delivery
Qworg 6y ago
There's a great Planet Money story on the Onion King. https://www.npr.org/sections/money/2018/09/19/649273647/episode-657-the-tale-of-the-onion-king https://www.npr.org/sections/money/2018/09/19/649273647/epis...
- selimthegrim 6y ago
  You know, why didn’t Louis Sachar write a YA book about this?
- mrnobody_67 6y ago
  That was an amazing episode
gezh 6y ago
If I remember correctly, in contrast to WTI, you will get assigned a shipping/warehouse certificate for wheat/corn in a designated elevator somewhere. You'll have to pay the warehouse a daily carry cost but don't actually have to take it out of that warehouse (you can if you want to).
- hkmurakami 6y ago
  That reminds me of the GS Aluminum storage warehouse story.

draw_down 6y ago

I remember this happened once, to someone who bought cocoa on the commodities market.

lozaning 6y ago

There's a story online thats floated around for a while about a guy that ended up with like 10 tonnes of coal this way. Was delivered via barge somewhere if I recall correctly. Edit: finally found it: https://thedailywtf.com/articles/Special-Delivery https://thedailywtf.com/articles/Special-Delivery

whatok 6y ago

John C. Hull - Options, Futures, and Other Derivatives has details on an accidental cattle futures physical settlement. https://www.passeidireto.com/arquivo/73586616/john-c-hull-options-futures-and-other-derivatives-pearson-2017/19 https://www.passeidireto.com/arquivo/73586616/john-c-hull-op...

koheripbal 6y ago

There are services you can call to help you out of this predicament. Obviously they charge a huge margin.

bluGill 6y ago

Worse it isn't 1000 bushes at your home it is at some transfer point several states away. If you are lucky it is an elevator that sends you a bill for storage and can unload them. If you are unlucky you need to get a truck (with a driver) there on short notice to get it out of there.

lonelappde 6y ago
What if you just don't? You probably just get a larger bill.
- pas 6y ago
  Sure, but that can become a very big bill fast. Basically they can charge you (almost) whatever they want.

cecilpl2 6y ago

https://thedailywtf.com/articles/Special-Delivery https://thedailywtf.com/articles/Special-Delivery

Qworg 6y ago

There's a great Planet Money story on the Onion King. https://www.npr.org/sections/money/2018/09/19/649273647/episode-657-the-tale-of-the-onion-king https://www.npr.org/sections/money/2018/09/19/649273647/epis...

selimthegrim 6y ago
You know, why didn’t Louis Sachar write a YA book about this?
mrnobody_67 6y ago
That was an amazing episode

gezh 6y ago

If I remember correctly, in contrast to WTI, you will get assigned a shipping/warehouse certificate for wheat/corn in a designated elevator somewhere. You'll have to pay the warehouse a daily carry cost but don't actually have to take it out of that warehouse (you can if you want to).

hkmurakami 6y ago
That reminds me of the GS Aluminum storage warehouse story.