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Friday, July 11, 2008

Prices show speculation theory wrong

Speculation in the commodity futures markets has been widely blamed for the current rise in food, commodity and oil prices. I have already posted here and here as to why this hypothesis is a mere fantasy. Now here is more proof from the market against such wild theories.

The Financial Express compares the prices of those commodities in whom futures trades have been barred. The graphic below is self explanatory.

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