Speculation and the Chicago Board of Trade

Paperback | January 31, 2012

byJames Ernest Boyle

not yet rated|write a review
This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1920. Excerpt: ... grain trade claim that it does. And since the future price is made in the pit, largely under speculative trading,--the conclusion is also reached that the cash price is a mere football of speculation. It has already been stated in Chapter I that cash price reflects supply and demand conditions. It may now be stated at this point, that future price does not determine cash price. The course of corn prices on the Chicago Board of Trade for 1917-1918 illustrates the fact that futures do not dominate cash prices. The 1916 corn crop was small. In 1917 the crop was large--the largest on record, according to the figures published by the Department of Agriculture. But this corn was wet and very largely unmerchantable. Coupled with this fact came war conditions, government food control, car shortages, coal shortages, and general market demoralization. However, the consumptive buyers of corn (the corn products companies, the mills, the feed manufacturers, livestock interests, etc.) needed the corn and bought freely. In January, 1917, cash corn ranged from $.93 1/4 to $1.03, and the May corn at the same time was $.93 1/2 to $1.03 1/4, or practically the same as the spot. From this date on the premium on cash corn gradually increased, as both the spot and the future rose in price. In July cash corn had climbed to $2.32--a figure so high as to alarm government officials. At this period we were shipping every possible ounce of wheat to our allies in the World War, and hence we were consuming all sorts of wheat bread substitutes, one of which was corn. Officials of the federal government gave a warning to the Board of Trade that corn prices were getting too high, and that speculation on corn must be curtailed or stopped altogether. The assumption apparently was that spec...

Pricing and Purchase Info

$27.95

Out of stock online

From the Publisher

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1920. Excerpt: ... grain trade claim that it does. And since the future price is made in the pit, largely under speculative trading,--the conclus...

Format:PaperbackDimensions:72 pages, 9.69 × 7.44 × 0.15 inPublished:January 31, 2012Publisher:General Books LLCLanguage:English

The following ISBNs are associated with this title:

ISBN - 10:0217056369

ISBN - 13:9780217056366

Look for similar items by category:

Customer Reviews of Speculation and the Chicago Board of Trade

Reviews