Your Qna     New Questions     About Qna
EQNA is a growing interactive people-knowledge network with more than 120,000 questions and 450,000 answers from over 55,000 members worldwide. With all friendly functions, EQNA will be a fun place to join, share and discover knowledge, an open net space allowing you to connect with other people having specialized knowledge or ones with same interests to yours. EQNA login features secured logins using Twitter and Facebook enable you to place questions without sharing your personal information to us. Lets get out and join our community today!
Ask a Question

How can you calculate how much a commodities price is the result of speculation?

There are good arguments for why food and gas prices going up, like increased consumption by China and India. I wonder how much these price increases are affected by speculation in futures markets as opposed to good old supply and demand?

Futures contract DO have an effect on commodity prices, but less than many think. They are bets on where the prices may go (Long or Short) , and have little real effect on current prices, except that the spot price may rise if the future price rises considerably, as demand may rise.


this is an example of fear buying. future prices are driven up by fear of supply which in turn creates more fear...just old fashioned hoarding, just set in the future...
of course, those that have bought futures have a vested interest in keeping supplies tight otherwise they stand to lose their shirts...
despite the great stress placed on corn by ethanol there still remains a four year supply of grains worldwide, and more in the usa. this isn't the info televised, but a simple check of reserves will prove it...
if australia continues with its drought, which seems likely, then a deficit will occur in wheat. there is a new strand of rice blight in china, one there is no solution for at present...
given all these factors i see no reduction in grain prices, ever...but don't put the cart ahead of the horse...
remember, futures contracts were developed as a method of guaranteeing stable prices for farmers who were being whiplashed into bankruptcy by price fluctuations. by the time they got a crop to market during a bumper year their price didn't cover costs. with futures they could assure themselves of a constant price, regardless of yield. one of the major advancements of modern economics...
otherwise, what russ said....

Text ColorBackground Color
Ordered ListBulleted List
Horizontal Rule
Design ModeDesign
Html ModeHtml

Top Question And Answer

  • How do you calculate sound absorption using the sound intensity reduction way?
  • how to calculate the annualized rate for a discount rate of 2% 10 net 30 days?
  • Please give me some information about the risk calculate before invest in a project.
  • How can I calculate statistical significance for poll results?
  • How do you calculate the hourly wage for a salary job? I want to compare a contract and salary job.
  • How do I calculate % returns for an entire portfolio?
  • Do you think the institutional investors flight to the commodities market is increasing inflation?
  • What are precious commodities and non precious metals?
  • Aids..... manufactured virus? .... Or the result of marrying a monkey?
  • Curious economics?....The high price of gasoline has caused many to drive less. As a result, traffic
  • Have you ever needed to do something, knowing that the end result would bring you much sorrow and
  • Evolutionists, how do you know that homology is not the result of God creating similar design?
  • How do you predict the Result of "Chambers v. God" - Will God be injuncted by a Default Judgment?
  • when the dce result will come out?it is delhi college of engeenering examination.
  • I want to buy a bag,what is the
  • How is
  • Www.mokahandbags .com
  • Facebook new account opening form
  • Hom account
  • Hom bhr0165301533
  • Hom account
  • Hom bhr0165301533
  • how do I get mms message fro.
  • Find out how many cars of my model are registered
  • What would happen if a letter opens in the mail
  • Facebook new account open
  • Facebook New Account Creation
  • Facebook new account creation
  • locating a business that closed