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I actually don't see why this is a problem. The author's metaphor at the end about Kraft "going across the aisle" seems perfectly plausible. Anyone in a positio
by HorizonXP 12y ago
I actually don't see why this is a problem. The author's metaphor at the end about Kraft "going across the aisle" seems perfectly plausible. Anyone in a position to buy a product will do their best to negotiate the price down.
- CamperBob2 12y agoAgreed, and I also don't see why it fooled anybody. Wouldn't it be common knowledge in the industry that the CBOT-traded wheat was unsuitable for use by Kraft in their products?
- kasey_junk 12y agoThe contract specifies a maximum, but you can mix it with other stuff to make it acceptable. Or it could have been Kraft doing a true hedge. It is really hard to discern precisely why another market participant, even a very large one, is doing something.