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S Illinois | You may have a good point on producers benefits with futures markets. https://www.researchgate.net/publication/23960859_Do_Futures_Benefit...
A quote from his findings.
"Overall, our findings suggest that there is no basis for advocating the use of futures as a means to improve commodity producers’ well-being. The reasons for this assertion are that producers as a whole lose from making futures available and, more importantly, that futures availability reduces welfare even for adopters, provided the market share of the latter is sufficiently large."
This is just one research paper and I am no where near smart enough to validate or invalidate his findings or even discern if his math is correct. However the one graph on page 30 shows that if there is a futures market, a producer is better off using them than not when less than 70% of producers use futures markets. When more than 70% of producers use the futures market all producers are worse off from this market. So in summary his findings are that futures markets in aggregate hurt producers, but producers who use the future markets are always more profitable than those who don't.
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$ smoking - grains and beans up? NT
