Understanding the role of speculators or the funds in the market | Monday Morning Markets | Ep. 2

November 2nd, 2020 | Kinsey Senkel

In an era where there is plenty of noise and commentary surrounding agriculture commodity trading, were working to provide you with simple and straight forward market information.

To that end, the Rural Radio Network started a new video program called Monday Morning Markets.

Each week, Bryce Doeschot will be joined by Jeff Peterson of Heartland Farm Partners to discuss the overall market direction and breakdown some of the frequently used terms among brokers.

Topics Discussed: 

  1. A new week and a new month. What to watch in November.
  2. Role of the funds in the commodity markets.

Information from the CME Group 

What Are Speculators?
Speculators are primary participants in the futures market. A speculator is any individual or firm that accepts risk in order to make a profit. Speculators can achieve these profits by buying low and selling high. But in the case of the futures market, they could just as easily sell first and later buy at a lower price.

Obviously, this profit objective is easier said than done. Nonetheless, speculators aiming to profit in the futures market come in a variety of types. Speculators can be individual traders, proprietary trading firms, portfolio managers, hedge funds or market makers.

 

DISCLAIMER: Commodity Futures & Options involve substantial risk of loss and are not suitable for all investors

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