Hard money chases commodities

As frequently happens in shaky economic times, when safety questions surface about popular traditional investments, "hard" money investments lean toward commodities, which allegedly are backed by actual metal, agricultural products or live animals like cattle and pigs. How sound this is probably is open to question, as well, but a fact nonetheless, in times like this.

This additional money flowing into commodity contracts at the Chicago Board of Trade and Chicago Mercantile Exchange skews the market, and leaves each commodity open to speculation, rather than pure supply-and-demand economics.

Along with the weak dollar internationally, this speculative investment is a major factor in the huge price run-up in corn, wheat and other grain futures, as well as the cattle and hogs who then are fed the corn. This creates an artificial market, that makes it harder for the producers of the actual commodities themselves, and the buyer-users, to make a profit.

An actual farmer or rancher, who makes his living this way, as opposed to an investor or speculator in commodities futures contracts, is the victim of the market flim-flam.

If those making the public outcry about speculation in the commodities markets including oil, were really concerned about who was aggrieved, rather than only making political hay, they would look seriously at the problems this causes individual farmers and ranchers.

That'll be the day!