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Napanee, Ontario | Well first of all, I would disagree with your point that corn hit $8 because of market manipulation.
IMO, it hit 8 bucks because there was a national drought and a supply shortage.
Which, not so coincidentally, is the same factor we see in the cattle markets now - a supply shortage... and also unsurprisingly - a similar spike in price. Sure, could be some bandwagon froth pushing it higher.. same as corn maybe went a buck higher than it should have in 2012......but that is a normal function of markets. Reactions and decisions of participants, maybe getting a little excited, based on underlying criteria. If some people have enough money to move a market based on their decisions about said economic indicators, good for them - Trade accordingly.
BUT, and this is the big BUT that you are glossing over----- that is A lot different than a move triggered strictly by market manipulation. IE - no real underlying change in economic criteria (see supply shortage). | |
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Incentive for Market Manipulation
