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Old Fri May 05, 2006, 09:15pm
SAump SAump is offline
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Join Date: Jun 2005
Location: USA
Posts: 1,577
Talking Keeping UP with the Market

"It's wheat from the chaff, you silly goose."
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chaff [ chaf ] noun Definition: 1. seed coverings removed by threshing: the dry coverings bracts of grains and other grass seeds that are separated by the process of threshing. When cereal crops are harvested mechanically, chaff is removed by the combine harvester and deposited with the straw in the field. ... 3. worthless thing: something that is worthless or irrelevant
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It was decided early on to seperate the wheat from the chaff on the field. CHAFF is no longer the main issue. The question now on the table is what to do with the wheat.

The FARMER (AMLU) must consider this product to be the BEST. It is the CREAM of the wheat CROP from which MORE value is derived (MONEY). When wheat prices FALL due to economic reasons, the FARMER must sell his wheat (UMPS) on the market at a LOW PRICE or hold onto the wheat (UMPs) in STORAGE for the LONG term (ala the STRIKE) until the market prices recover.

The original poster listed arguments FOR and AGAINST each side as if to sell some of the less quality wheat (Single A) at a low price and store the better quality wheat (AAA) until prices are better. The FARMER cannot seperate the A wheat from the AAA wheat once it is placed in storage (the SHAFT). He must SELL all for one low price (Poor farmer) or sell all for one high price (Rich farmer).

Getting the Wheat Shaft refers to waiting until the market can afford that additional 2 cents per ticket. Really, the market can already afford it because times are GOOD. But for the time being, it prefers to SAVE money on lower quality wheat (SCABS). A wise FARMER must predict the future prices and decide what course of actions to follow. This is a highly speculative market and there is LOTS of MONEY to be WON or LOSS. The FARMER must hedge against risking the WHEAT product by taking precautions during storage and using that time to develop OPTIONS to protect RISK, ala a backup plans. Eventually the market must decide if the short term cheaper investment on low quality of the wheat and the long term higher cost of restructuring the FARM AGENT NETWORKS is worth the entire HOLDOUT.

Simple SUPPLY and DEMAND, it is NOT. My money is on the farmer. It will cost baseball a hell of a lot more to restructure umpire networks through the NCAA than it will to deal directly with the AMLU. $90 for Rookie BAll or BUST!

Last edited by SAump; Fri May 05, 2006 at 09:29pm.
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