Should We Allow Speculators in the Commodity Futures Market? - Tim Andriesen, CME Group

There has been quite a bit of commentary in the media recently from certain farm groups like the NFU and R-Calf regarding the need to eliminate or more strictly regulate speculators in the market.  Interest in commodities has greatly increased in recent years which has increased the volume of speculators trading in corn, beef and wheat futures.

Are speculators really causing damage to the marketplace?  Are the commodity ETF’s in your RRSP’s destroying your ability to hedge your farm products?  When I was in University I was taught that speculators play a key role in establishing liquidity in the market.  Is this increase in volatility of prices the real cause behind rising food prices?

at the NCBA 2011 meeting in Denver I spoke with Tim Andriessen from the CME Group about the role of speculators in the market.  Have speculators over played their hand and do we need tighter regulation of hedge funds investing in farm commodities.

SEE MORE NCBA 2011 COVERAGE

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