July 22, 2009
I wish to propose
following: proposal for commodity trades in USA and UK.
As presently, NYBOT,NYMEX, CBOT, ICE, and other exhanges provide future trading for all commodity stuff.
i think most future tradert on these exchanges are maring (brrowed)money and on margin base played mostly by SPECULATIVE traders 85%-95% and Physical (real BUYER and SELLERs only 10-15%, we can see by end of expiry any contract, real (PHYSICAL) delivery taker buyer only very limited.
If this is the way how this PLANET's real DEMAND and SUPPLY be known.
As Physical buyer have to real shipment and pay to sellers. and same time physical buyer has to protect his profit he has to hedge with extra capital. to protect his profits otherwise speculators will bring market up or down a day for more then 10-15%, So in this term real buyer and seller dies.
While speculator (who dont havet to take any delivery at all) only enter in the market for profit and sales on profit. Threfore speculator do not have any burden for taking any real terms shipment.
Lets example ICE NY#11 raw sugar contract oct v09 Says, now price 1 lot 17.80/lb.
1. for speculator he need only USd 900/1 lot to enter in the future market and buy its and keep for profit.
2, White Physical buyer has to buy same 1 lot in future he has to invest USd 900/lot (50Mts)sale, and same time he has buy 50mt same sugar and prepare full amt to pay to seller thats USD392.43/mt x 50mt=TTL amt he need to keep ready USD19,621.11
Its not fair to real traders to follow speculator unreglated price up and down daily so big way.
And for market real demand and supply we dont know how to find out from preset Oct contract's volume that which one is taking real sugar and which one is not going to take any sugar only spculator.
Oct contract volume today now 21420 lots. Normally volume runs thry 50000 lto 60000 lots a day of trading 2.5milion metric ton tradiy volume a day x 20 days a months volume 50 million metic ton sugar trade on exchange 90% amount speculative more then the real physical traders take sugar a month.
In such speclative way all commodity market are contolled by speculator and large banks. How the commoditys real demad and supply and its price determined by such future exchange.
To change world real poverty and establish real demand and supply and real price to producer and buyers, the future exhcange must remove spculators from trading and let the real traders buyer and seller establish real prie which can help poor farmers nad AFRICA/ASIA- LATIN AMERICA. and all over the World can help poors who can buy commoditys at real resonsonable price.
or to make all the future market trade as COMPULSERY to take delivery, so the speculator will go away themself.
Or give physical traders a seprate trading plateform and give speculators a seprate trading plate form to trade.
This way- crude-OIL/soy bean/wheat/corn/cotton/sugar/ NG/ all the commodity can really can find its real demand and supply and real price. this can help to lot of poors in all the countries. they physical trade market can find its real price.
its very important to end the current ressession and get things change now CHANGE- what pres. Obama says is coming?
This is real change need to protect every one to feed their stomach.
If you need further comments and information please contact me anytime, I can provide you lot of examples this speculator using little money and destroying the economy's around the world and its hitting to all countires and all the planet pepole and its producers.
My mobile in Taiwan. +886-930221253
Please correct in the countries column that - Taiwan is not provience of china. its seprate state then china, please correct it by today.
Shyam l. Thakur