Futures markets, speculation and the destabilisation of commodity sectors: a comprehensive analysis

Yves Jegourel and Jean Francois Verdie
Additional contact information
Yves Jegourel: Larefi - Laboratoire d'analyse et de recherche en économie et finance internationales - UB - Université de Bordeaux

Post-Print from HAL

Abstract: Given the recent attempts at reforming financial excesses, the issue of commodities trading is without a doubt one of the most essential and most sensitive. As opposed to arguments aiming to prove the subordination of commodity financial markets to speculative interests, we show that these markets can be helpful not only to deal with the price risk but also to promote the dissemination of available information and serve as a tool for inventory management. However, speculation is an absolute prerequisite for their existence. Basing our work on existing literature, we suggest that although it may have a destabilising effect, speculation does not produce all the harmful effects that are sometimes alleged. In particular, it cannot alone explain the sharp rise in the price of commodities observed from 2006 onwards.

Keywords: Modities; Futures markets; Destabilisation; Commodity sectors; Speculation; Efficiency; Index traders; Commodities trading; Price risk; Information dissemination; Inventory management (search for similar items in EconPapers)
Date: 2015-01-01
References: Add references at CitEc
Citations:

Published in International Journal of Economics and Accounting, 2015, 6 (4), pp.380. ⟨10.1504/ijea.2015.074567⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03903827

DOI: 10.1504/ijea.2015.074567

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().