AM64
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The commodity markets do draw in a lot of speculators, but at the core it shifts the risk away from farming, mining, extraction, harvesting, and similar type companies that don’t want to put their operations in jeopardy with exposure to the price changes of the commodities that they produce.
Yeah, I was taught that - particularly with respect to farmers and creating price stability for farm products, and it's reasonable and to a large extent necessary. I find it impossible to equate that with oil that changes hands while still on a tanker crossing an ocean. I can't see someone buying commodities or futures or whatever derivatives the next craze will be without having to take possession and store the commodity as being anything more than speculation. If this behavior were in a court, it would be tossed for "standing"; if you have no intention of actually owning/possessing a product then you have no business being allowed to "buy" it.