Wednesday, April 9, 2008

Soybeans: Lock Limit UP!

If this is due to speculative excess, then regulatory oversight is almost a certainty. Speculators, and especially hedge funds, must take the blame for the hammer of regulation that will fall upon them. This will probably arrive in the form of huge margin increases or being completely banned from participation in the markets. It may even result in speculators being required to pay all cash to establish a position in the commodity futures markets. This will, in turn, hurt farmers who market their products in the futures markets by hedging.