Without speculators there is not a liquid supply of counterparties for hedgers.
True, but I could live with that. The cost of the derivative would adjust to meet the supply-demand.
You are correct of course. People who aren’t finance people know nothing about hedging. For instance, if you are an oil and gas company and you buy a billion dollars worth of oil and gas reserves from another company. Are you really going to risk the price of the commodity falling and your deal becoming a big loser that bankrupts your company? Or are you going to hedge your exposure with a derivative? You and I know the answer.