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San Francisco Onion Futures Company

398 points · 179 comments · z-mach9

  1. cwal37 · · focus · HN ↗
    For those who don’t know:

    <a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Onion_Futures_Act" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Onion_Futures_Act

    (which also banned box office receipt futures)

    A fun thing is to go on FRED and make a graph with prices from onions and, say, corn to see the differences in volatility.

    1. chirau · · focus · HN ↗
      I looked up onions, lettuce and tomatoes (because burgers), and the volatility actually looks very similar. Am I missing something or looking at the wrong things?

      Tomato: <a href="https:&#x2F;&#x2F;fred.stlouisfed.org&#x2F;series&#x2F;WPU01130217" rel="nofollow">https:&#x2F;&#x2F;fred.stlouisfed.org&#x2F;series&#x2F;WPU01130217 Onion: <a href="https:&#x2F;&#x2F;fred.stlouisfed.org&#x2F;series&#x2F;WPU01130216" rel="nofollow">https:&#x2F;&#x2F;fred.stlouisfed.org&#x2F;series&#x2F;WPU01130216 Lettuce: <a href="https:&#x2F;&#x2F;fred.stlouisfed.org&#x2F;series&#x2F;WPU01130215" rel="nofollow">https:&#x2F;&#x2F;fred.stlouisfed.org&#x2F;series&#x2F;WPU01130215

      1. gradus_ad · · focus · HN ↗
        The weather affects all crops
        1. brookst · · focus · HN ↗
          But isn’t the point that futures trading reduces volatility from things like weather?
          1. [deleted] · · focus · HN ↗

            [deleted]

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