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Clint:
The price of all the Chicago seats have declined rapidly. Many of my
friends that owned now lease, and when they are forced to choose between
buying a new seat or trading upstairs, many will now go upstairs. Many
floor traders see that the end of at least some of the open outcry pits
is near--and with Merc seats cut dramatically in price and lease cost,
there is simply lower demand for Mid-Am seats--simple supply and demand.
By the way...there were quite a few years not oo long ago when the best
play in the price of sugar was buying a seat--at less than
$3000...prices fall and rise and fall and rise...
Tim Morge
Clint Chastain wrote:
>
> I have been looking into the MidAm as possible lower risk way to start
> getting my feet wet in terms of trading commodities and futures.
>
> Smaller contracts, lower margin requirements, & longer hours all make it
> seem very appealing to a commodities newbie. However, a couple of things
> have raised my suspicions:
>
> 1) The volume and open interest figures seem rather underwhelming as
> compared to some other markets. This appears to result in more gappy,
> fly-specked charts which are more difficult for me to follow. Apparently
> longer time frames are called for??
>
> 2) The price of a seat seems to be steadily declining - from about $15,000 a
> little over a year ago to a just over $3,000 now. This raise two questions
> in my mind: (a) Since the price of a seat is presumably a function of
> demand, why are fewer and fewer people - apparently - interested in trading
> at the MidAm? (b) Why do the authorities at MidAm not care that we know, or
> possibly even intentionally want us to know, that the price of a seat is
> falling?
>
> Any comments or experiences welcome.
>
> Clint
>
> | Just remember: wherever you go, well, there you are. - Buckaroo Bonsai
> |
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