Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Good to see you commenting, Mig.  As I recall, when last I read about this, the Dallas based cotton futures broker was unable to honor the contract when the cotton was ready for delivery.  I find it difficult to fault the farmers for selling their crops ahead at twice the usual price at the time they would normally be doing so.  They were using the futures system for its intended purpose.  My guess is that the futures broker was a bit queasy about this transaction.  My sense is that, in a relatively small market, the futures price rises to accommodate the amount of speculative money being injected into the system.  When that money began to rush out the broker apparently couldn't stay ahead of the curve.

I referenced this in a comment back in August or September.  Finding the original article in the newspaper would be easier once I find my comment.

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sun Nov 30th, 2008 at 12:30:13 PM EST
[ Parent ]

Others have rated this comment as follows:

melo 4


Occasional Series