3 ms·
price =|= availability
by hef19898 4y ago
price =|= availability
- puzzlingcaptcha 4y agoThe very purpose of futures contracts is to ensure availability in the future at a predetermined price. I am not sure what your point is.
- hef19898 4y agoThat there is no guarantee that the stuff will be available so, thing shappen. Also, just because futures are cheap, doesn't mean stuff is available now or in the near future. It only means the markets think grain will be plenty at one point, and thus cheap.
- ta1243 4y agoAll a low futures price means is that money men are betting there won't be a shortage, it doesn't say anything about whether there will be a shortage or not.
- pfannkuchen 4y agoPrice is not solely determined by availability, but it is largely determined by availability, especially in the case of rapid shifts in availability (since other factors take time to adjust in response).