The institutions with the largest commodity trading organizations are the banks, if you've noticed and they're being regulated every which way as they are infused with legal money laundering thanks to the Fed! Goldman Sachs, JPMorgan, Morgan Stanley, et al, were advising clients, which include pension, private equity groups, hedge funds, mutual funds, wealthy individuals, to purchase commodities, farmland, etc., to load up on commodity products, which caused riots in some countries, helping to push oil to over $147 per barrel back in 2008. Then the bottom fell out and despite saying, "The USA has the best and brightest in wall street banks", they had to be rescued with a series of QE's, government stimulus and the kitchen sink! JPMorgan said it used traders for hedging purposes and it came to past that the London Whale was gambling away in excess of $6.2 billion in losses. Now JPM has to pay fines totaling close to 1/2 Billion for manipulating the energy market for their own profits. Forget about supply and demand equations on wall street. Despite a glut of oil in the USA, market makers need to trade oil up to fool those into taking their higher priced hedges on inflation expectation or whatever faux news they decide to push.
kli, forget about inflation! All you're getting is faux trading inflation expectation! The Fed can't even get residential mortgage securitization to be unfrozen, despite a combined $85Billion purchases of mortgages and bonds on a monthly basis. Even wall street trader employment is succumbing to rapid fire computer trading activity! Technology rapid advancement is allowing for corporations to cut labor costs to improve profitability as they buy back stocks to reduce share count and improving earnings per share thanks to low interest rates. I don't know when Detroit, Stockton, other municipalities, US Postal employees will be going gang busters with wage hikes so they can chase fewer goods with more money! Ain't happening, especially as an aging demographics unfold! Forget about 1980's rising interest rates too. There's been false hopes for the past 3 decades and counting!