Word: contraction
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Dates: during 1970-1979
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Short Sellers. On May 7, trading in the May Maine potato-futures contract expired after a 15-month term, leaving the unprecedented number of 1,911 contracts unsettled. That meant that owners of contracts to deliver potatoes were still obligated to fulfill their promise. When the final delivery deadline set by the exchange arrived early last week, 997 contracts were still not settled, and none of the 50,000-lb. car lots of potatoes that each contract represents had been shipped from Maine to New York City for distribution...
...told TIME Correspondent Eileen Shields. "I think it will all work out." How could a market professional like Simplot, at 67 a veteran of half a century in the potato business, get drawn into such a mess? The biggest factor was the volatility of the May potato-futures contract. From a low of $5.92 per 100 Ibs. of potatoes in February 1975, when trading in the May contract began, the price zoomed to almost $20, dropped back to $8, went up again to about $17, then fell to $8.70 on the day trading expired...
...upward swings attracted the short sellers-speculators who hope to make money when the market goes down. With the exception of people in the business, like Simplot, short sellers seldom see potatoes or even own them, nor do they care to. Their object is to sell contracts to deliver potatoes in the future, then buy back those contracts at a lower price before the delivery date. The difference is their profit. A contract to deliver sold at $16 will yield a profit of $10 (less commissions) if bought later at $6. In commodities trading, the "shorts" are ranged against...
Simplot concedes that he was "sucked in" by the market's upswings and sold a lot of contracts in the $19 and $16 range. Says he: "They got things up awfully high. I never sold at such high prices before." He bought back some of the contracts as the market declined, making a profit. But he did not try to make any big purchases until the May 7 expiration, hoping the price would decline even more. On that day, he made an offer of $8, but contract trading stopped...
Finally, students must realize that their silence helps to make Harvard's anti-union policies possible. The workers need the support of all the members of the Harvard community, and their position is undermined when students take over their jobs during emergency union meetings. With contract negotiations due early in the fall and with retaliatory action against the union possible over the summer, it is important that students express support for the workers now. Students can most effectively help the kitchen workers by sending petitions to Frank Weissbecker and by visiting him to register their concern about, and disapproval...