> commodities don't go up 100x like stocks do This is entirely due to the limit mechanism that tries to keep prices approximately in line with supply and deman

> commodities don't go up 100x like stocks do This is entirely due to the limit mechanism that tries to keep prices approximately in line with supply and demand. There have been several instances of grains in particular locking limit up during a blight over and over again. In recent history oil going negative is another example. If it wasn't for the limit mechanism (and in some cases, the literal government) stepping in they absolutely could 100x. When you're a goods supplier you'll pay nearly anything once prices reach your "uncle" level. The dynamics at limit are somewhat interesting as it's a case where the entirely market has consensus that "I need to buy (sell) now or I'm hosed". I wasn't suggesting you were saying you couldn't speculate on commodities. I was mostly suggesting that even removing traders the "speculation" occurring is due to the anticipated future value of that commodity. If it wasn't, then buyers and sellers would go to the cash market which while extremely volatile may also be a smart choice for at least some of the crop. IMO limit mechanisms are not nearly aggressive enough and I've been caught in a few of them myself. One of the few rare nightmare scenarios for a commodity trader. But making limits more aggressive would imply some form of price control which also would not be great.