Commodity prices are significantly more volatile than prices of industrial products. The main functions of futures trading being hedging against, and speculation on price fluctuations; and it is hedging, that determines the role of speculation.

Commodity prices are significantly more volatile than prices of industrial products. This extreme price instability establishes a need for futures markets in commodities. The main functions of futures trading being hedging against, and speculation on price fluctuations; and it is hedging, that...

The Thesis: Commodity prices are significantly more volatile than prices of industrial products. Production as well as non speculative demand of raw materials are subject to stochastic - sometimes even systematic - fluctuations, which get translated into pronounced price fluctuations by low...