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Sure, bakers who know they need wheat in six months can buy some futures for six months from now. Then, what is the problem that TFA is talking about? I thought
by ArchD 15y ago
Sure, bakers who know they need wheat in six months can buy some futures for six months from now. Then, what is the problem that TFA is talking about? I thought it was about poor countries being impacted by the price spike resulting from the long speculation. If the people in these countries had bought the futures they needed well in advance, why were they getting impacted? I inferred that the problem was because people there were not sophisticated enough to buy the necessary futures.