This is NOT short selling. A farmer , or anyone who sells into the futures market to hedge a commodity that they actually own / actually are growing— already have sunk planting and fertiliser and fuel and employee labour costs ++ harvesting equipment ownership, infrastructure on farm , & commitment & funds in place to secure further harvesting requirements and mechanical costs of preparation to get machines ready; & agronomy and chemicals and additional fertiliser to boost yields if warranted before crop growth spurts ; then harvest labour staff or weed management etc ...., ** actual producers are 100% at risk to world & local factors commodity prices for : 1. the crop that they are growing , or 2. making direct plans , commitment including land and equipment and their time and water to grow!
**Farmers have multi- million farm operations but with huge borrowings. They hold farming country specific to growing the particular crop commodity this year or next - ground being prepared, management decisions made to set aside land directly for purpose of growing this crop using valuable stored water or moisture in ground , which also has costs and opportunity costs . The Landowners own labour costs and family members work and living expenses are sunk costs - income must be guaranteed . There is also overdraft facilities and lines of credit in place at higher rates of interest with their bank or crop inputs agricultural companies already established . Crop actual costs already spent & accrued .
Income comes in well over a year after crop commitment decisions are made— and it takes decade or more to get ahead at minimum.
Shorting is abhorrent against primary producers who are fundamentally producing and over a barrel with traded world commodity prices. “Big money always wins “ - the actual world controllers , end users and buyers usually are very active in the global futures markets in their relevant commodities, and generally do not lose - rarely , only when there is a significant global weather driven supply shock or perhaps political event.
** Most of the time , the majority of the time — primary producers , including miners , are Price Takers . **
To compare fundamental forward crop marketing of a percentage of anticipated crop production ,ie. hedging , with short selling , and use as any sort of narrative to make short selling ok — is obscene imo .
Short selling - is a calculated , advantage taking , massive nasty bet against positive price action in the market .
ADN Price at posting:
22.0¢ Sentiment: Buy Disclosure: Not Held
(20min delay)