This is a uite possibly the dumbest account on this platform. If you as a producer hedged your risk and the market dropped then it worked perfectly. Besides that, this actually never happened.
North Dakota Stockmen's Association is calling for a CME investigation after live cattle futures crashed $30/cwt.
Here's why.
The crash hit in late May. Fund selling, an NWS disease case, and terrible technicals triggered a bloodbath for hedged producers.
CME's response? Investigate the manipulation?
No. They widened price limits and lowered margins effective June 1.
Wider limits mean bigger daily swings. Lower margins mean more speculators piling in with less skin in the game.
The exchange didn't protect ranchers. It changed the rules to make the next crash easier.
You hedge to manage risk. Then they move the goalposts after you're already in the trade.