Im relatively new to the commodity game. Im not interested in trading in it. I just like the intereresting stories that come out from that part of the trading world. But do traders in that field always like to play alotta games like cornering one future, and breaking other traders. Or doing the reverse. This guy at UBS seems to think aluminum is being squeezed in the LME. Isnt that illegal though? And he saids this happens all the time. http://transcripts.businessday.co.za/cgi-bin/transcripts/t-showtranscript.pl?1168902156
Actually its quite rare for anyone to corner most commodity markets. Most are too liquid, and there are trading limits on how much any entity can hold. May be possible in some of the thinner markets. Hedge funds as a whole definitely move markets as they move like lemmings, all at the same time. Collectively they are massive. The Hunt Bros cornered silver back in 1979 I believe. At first it worked well for them, but then the market turned and they got slaughtered. Too big to get out quickly or without speeding the market drop even more. It actually put them into bankruptcy, and they were some of the wealthiest guys in the USA at the time.