Congress to have a hearing on commodity index funds and speculators

Discussion in 'Wall St. News' started by Daal, May 19, 2008.

  1. <i>"This isn't a bubble... commodities have been in a bull market since 1999 and will be in one for at least another decade."</i>

    I agree... on a long-term basis. But how do you explain a physical commodity being priced 2x front-month futures over spot price? At any moment in time, that kind of insane paper shortage is a bubble.

    Long-term, bull market. Short-term at times, huge frothy bubbles
     
    #11     May 19, 2008
  2. The spot you are quoting was for a different type of wheat than the futures. The 3 futures exchanges trade 3 different types of wheat. MGEX - hard red spring, KC - hard red winter and CBOT - soft red winter. When MGEX wheat was over $24.00 CBOT wheat didn't even get to $14.00.
     
    #12     May 19, 2008
  3. :D well said dood
     
    #13     May 20, 2008