Samuel Cashiola

Institutional Speculators Disrupt Futures Markets: The Evidence Mounts

Those major institutional buyers that you are taking about see an opportunity and they are trying to take advantage of it. They have absolutely no personal obligation or liability to do what is best for other people (like farmers). They need to be doing what is best for their investors and if they believe that going long(or short) a commodity will deliver positive returns than that is their decision (not the governments).

The money managers of the large pools of money are not engaging in these markets with the purpose of hurting farmers (even if that is what is happening). The are involved because they believe that the intrinsic value of the underlying commodity is worth more(or less) than its current market value.