When you look at a commodities market you need hedgers and speculators. If you don't have one, you don't have a market. That's how it works.
Sentiment: NEGATIVE
You can no longer buy commodities at Merrill Lynch. My guess is many analysts and even executives are too young to know how profitable a hot commodities market can be. They will soon.
Historically, there has been a bull market in commodities every 20 or 30 years.
The price of a commodity will never go to zero. When you invest in commodities futures, you're not buying a piece of paper that says you own an intangible piece of company that can go bankrupt.
Commodities tend to zig when the equity markets zag.
So everybody has some information. The function of the markets is to aggregate that information, evaluate it, and get it incorporated into prices.
Today, there are also buyers and sellers of all these energy commodities, just like there are buyers and sellers of food commodities and many other commodities.
If I'm a commodity, it wouldn't be a wise idea to buy stock in me - although, in the long run, maybe I'm a slow growth investment.
You know, magic markets don't appear all the time, so you take advantage of them.
It is important to exhaust the potential of existing markets. But it is equally important to open up new markets.
A commodity producer should be comfortable being exposed to prices.