Money flowing into commodities… The Economist

September 14, 2016 by Jim Colburn Leave a Comment

but this time spec money is not long only:

“The last time investment flowed heavily into commodities was at the tail end of the China-led supercycle, in 2009-12. But back then, says Erik Norland of the CME, the pattern was different. Commodity markets were dominated by investors making one-way bets that prices would rally. Moreover, producers saw no need to hedge their exposures because prices (and hence their profits) were rising.”

http://www.economist.com/news/finance-and-economics/21706512-surge-speculation-making-commodity-markets-more-volatile-mice-and

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Our associates bring decades of experience to the table, as they seek to help our clients understand the markets. CRG will distill the myriad of pricing variables mentioned above into coherent research that is to-the-point and tailored to a clients hedging or pricing needs. In addition, CRG is available for consulting assignments and speaking engagements. CRG does not manage money or trade for itself.

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