Dan— All that needs done with futures and options
is force speculators to put in more, IE risk more
instead of small percentage they do now. Same for oil.
If that was done, oil and corn would drop.You give
investment firm 100 bucks, by the rules they hold
15% I think for reserves, invest the rest(85) only having
to put up 15% I heard in speculating, so the hundred
dollars you put in causes about 600 dollars worth of
speculating. So little in the pot, speculators
are reckless only wanting to be the next to the
last holder when it goes down.. Reckless gamblers..
Congress makes investment rules and aren’t doing the job.
And the way the rumors are flying it wouldn’t
surprise me to see corn at 10 bucks. Not good at all.
As people/politicians will crucify farmers....Ed
I don’t see how you can blame this on the speculators. The futures market is made of thousands of investors each trying to predict supply and demand. If they are wrong either way, they lose money. So they all have an encentive to guess right.
Crop prices and food prices are high because the world is using crops for fuel.