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| There are several different ways to define "funds". Funds are typically blocks of speculative capital put together to attempt to make money by trading positions in various commodities. There are rules and regulations regarding position limits that may be controlled by one firm or person put in place by the exchanges, the NFA, and the CFTC. The issue becomes problematic on account most funds either lean on mechanical trend following methods for determining their positions, or they are fundamental in their approach and attempt to understand "all of the information" that drive commodity price discovery. The CTC reports clearly show what these large blocks of capital are doing in the markets. When the boat gets lopsided, she typically rolls over. The job of a farm marketer, whether as a consumer or producer of commodities, is to attempt to understand all that we can about "our" markets. When one sees the opportunity to take a profit to the bank, don't second guess yourself. Any logical business manager must make the tough calls while understanding you seldom get the "top" or the "bottom". Please keep your comments coming, Mr. SeniorCitizen. You prompt good discussion with your "well thought" thoughts. | |
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Points of Clarification
