That is about nine times the US benchmark -- the Henry Hub futures price -- for LNG.
The futures price for delivery in January, at the peak of consumption, is only 94.9 cents, leaving no spread over today's price to pay storage costs.
Euribor futures surged as implied yields slid and the three-month Libor eased today for the first time since mid-March to 1.42% consistent with a futures price of 98.58.
Or the odd shape of the oil-futures price curve, which suggests the market thinks the price could spike later this year, then fall and return to today's prices by 2012.
The difference between the normally lower futures price and the spot price is an insurance premium the farmer is willing to pay to guarantee himself the September price, when he can deliver his crop.
It has done nothing to dispel the idea that if Wall Street clamours loudly enough for a rate cut and futures markets price one in with any degree of certainty the Fed will oblige.
The fact that they are demurring this year is telling, says Jack Scoville, a broker at Price Futures Group.
"They're definitely taking action to insulate themselves if prices go down, " said Jack Scoville, vice president of Price Futures Group, a brokerage firm.
The industrial commodity slid over the last couple of months on macroeconomic worries, said Phil Flynn, senior market analyst with The Price Futures Group.
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Jack Scoville, vice president, Price Futures Group, said the grain markets will remain very volatile for the next few months as weather extremes could sharply skew the yields for corn and soybeans.
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Investor cans bypass both company risk and commodities futures trading costs by purchasing U.S. Oil, an exchange-traded fund that tracks the price of oil futures.
Hedge funds do gain access to the spot price via futures or physical, too.
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And judging by the price of futures contracts based on the Case-Shiller composite index, investors expect house prices to fall further.
But one of Chicago's proudest feats was the creation of financial futures markets, which prompted far-flung firms and farmers to adjust their behaviour to the slightest twitch in the price of pork futures or Canadian dollars.
We have the futures markets: the future price of corn and soy and wheat has gone up.
The sell-off was probably triggered by a 3% drop in the price of Brent futures in international exchanges.
The constant onslaught of cash into these markets causes a frenzy in the price of the futures contracts and drags the spot prices ever upward.
If a farmer wants to protect from falling corn and soybean prices, it can lock in the price in the futures market, also a hedging strategy.
Futures traders are beginning to price in another -25bp cut.
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The other dinosaur den is financial options--the equivalent of the right, for example, to buy Treasury bond futures at a certain strike price--where traders hang over the railings, screaming and waving frantically.
However, so long as both the long and short positions are equally leveraged, the price of the futures contract will not change very much because there are just as many forced buyers as forced sellers.
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Sandy caused the price of gasoline futures to climb 10 cents to 15 cents a gallon, and a similar increase could unfold at the pump, Mr. Daco said, adding that any price spike would last just days.
In particular, they supply liquidity and price information that makes futures markets more efficient.
At that time the implied three-month yield stood at 2.05% and represents a retrospective step to January when the futures contract last traded at that price.
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Judging by the price of Fed fund futures, investors expect the federal funds rate to be as low as 2.25% by the end of the year.
These exchanged funds (ETFs) purchase a variety of agricultural commodity futures, and increases in the price of wheat, corn, cattle, and other food prices will benefit shareholders of these securities.
Lamb avoids futures or options as a hedge against price volatility, saying it's too risky.
Perhaps the clearest indicator of what the markets think is the price of federal-funds futures contracts.
Crude oil futures prices were lower Monday, as price action has also been choppy on the charts.
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