The Financialization Of Commodities – Traders Have to Broaden Their Vision

(Harvest) There has been much discussion on the impact of institutions and indexing on commodity markets. Most of the press has been negative. Large institutional non-hedgers are believed to have distorted prices and increased the correlation with other asset class. The empirical research on this topic has been mixed. While some have shown an impact from institutional usage, there are many studies that show no impact. The question has not been answered and more data may not provide the answer.

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