18.03.2011 - Do speculators really help commodity markets?
Commodity markets really trembled on the tsunami impact with rubber prices the most affected, ofcourse, others like crude oil, soybean also followed suit. A natural catastrophe in one region cannot bring down the entire commodities complex down for the precise reason that overall fundamentals do not change all of a sudden. And markets get adjusted to the new information: if Japanese refineries are shut it means that refineries in the neighbouring countries buy up more crude oil to refine as it will be bought by Japan, so market evens out after a gap..............................................Full Article: Source
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