Cotton settlement?

[SideShowBob]

What is up with the cotton settlement? Why is it seemingly lower than the actual final price?

 

[grg03002]

Cotton settled synthetically for H @ 177.00 so not sure what you mean...

 

[SideShowBob]

Last Friday's settlement was about 1.64 but the actual last trade was around 1.6520. Just wondering if this was some game they were playing there or if there was an actual reason.

They really need to get rid of the limits ... let the volatility flow like a fine wine....

 

[TraDaToR]

Is it different from the weighted average of the settlement window( 2:13 -2:15 PM NY if I am right )?

 

[grg03002]

exactly, settled at 2:15pm and rallied after the pit close, nothing special...

 

[TraDaToR]

What is happening this morning in Cotton? I have stuck orders I cannot cancel in calendar spreads and March is trading in a 20 tick range???

 

[TraDaToR]

http://www.reuters.com/article/2011/02/03/businesspro-us-cotton-idUSTRE7128V120110203?pageNumber=1

 

[SideShowBob]

I took this as someone large got caught short and asked their buddies at the exchange to bail them out.

 

[Steven.Davis]

It has certainly been done before. When Jesse Livermore was very long coffee during WWII, the shorts couldn't deliver. The government was prevailed upon to make coffee a war ration item which voided the open interest. Which let certain South American growers off the hook to deliver coffee to the US.