Summary
The supply-and-demand balance relating to agricultural commodities has shifted substantially over the past 12 months - but the effect of this change has been exacerbated by the arrival of speculators within the commodity market.
Indications are that around 30 per cent of the recent world trade in commodity markets has been driven by speculators. Over the past couple of months more than of 5 billion a week has been pouring into commodity funds across the world, and this weight of money has driven prices up.See the full content of this document
Extract
Be Positive - but Be Prudent Too
Speculators are out for the quick buck and will move in and out of the commodity markets rapidly as opportunities present themselves and then disappear.
These movements in and out of the market drive volatilit...See the full content of this document
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