Posted by randallinMo on August 08, 2008 at 09:19:08 from (216.74.200.174):
In Reply to: OT Grain prices posted by Big M on August 08, 2008 at 04:51:59:
The purpose of the futures market is for "price discovery". The true role of the speculator is to accept the "risk" of either buying or selling the product from the producer. You think the market is going down, so you sell. He (the spec) thinks it's going up, so he buys it. Simple supply and demand. Farmers never complain when prices go up.....he's loving the spec's then. Only problem is, the farmers won't sell when the price is going up because they might leave something on the table. The Chicago Board of Trade is the greatest price discovery system in the world. Yes, it does have it's problems, but take it away..........then we WILL have something to complain about.
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