The hits just keep on coming in the foods. Futures Magazine reports,
Hogs: April futures rallied limit-up on Wednesday. Traders are noting South Korean buyers will cram orders in quickly to get product in under the 60,000 tonne no-tariff limit that was announced Tuesday. That is why April rallied so hard compared with the deferred months. June futures hit up to 99.45 today. That is just under the 100.20 record that the June 2009 contract posted when it was trading in the summer of 2008. Traders were excited in the summer of 2008 when China was buying pork for the Olympics.
Traders beware, Sarkozy and the G20 are coming,
France’s stance on commodity-market regulation comes amid evidence of surging speculative investment in resources. In the run up to commodities boom, institutional investors boosted inflows into commodities markets from $15 billion in 2003 to between $250 and $300 billion in 2008.
Secretary-general of the Organization for Economic Co-operation and Development Angel Gurria Tuesday welcomed Sarkozy’s push to make the regulation of volatility in commodity markets a priority.
Commodity markets need to function better and more transparently, Gurria said in a statement. Other institutions have been more cautious in ascribing blame to speculators, with one study by the IMF earlier this month suggesting rising demand from emerging nations such as China and India was the driving factor for commodity prices.
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