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Grain prices are today set by derivative markets that have very little connection to actual produce.
by srean 5mo ago
Grain prices are today set by derivative markets that have very little connection to actual produce.
- WalterBright 5mo agoWatch what happens to prices when the supply goes up or down. Talk to any farmer about it.
- srean 5mo agoToo much latency in information flow. Too high a variance. Worse is that one can double bet on the same underlying asset on different exchanges (like taking out multiple insurance policies on the same car with payout on one policy not necessarily invalidating other policies). This grossly distorts prices.