[lbo-talk] Food Prices Again

Michael Pollak mpollak at panix.com
Thu Feb 17 09:36:19 PST 2011


On Thu, 17 Feb 2011, Doug Henwood wrote:


> I don't understand your confusion. If the futures price rises, of course
> the spot price is going to rise. It means there's someone willing to pay
> higher prices, at least for now, for the underlying commodity. Arbitrage
> will force the prices to move in tandem.

My other succincter problem is that in this model, the spot market controls the future, not the other way round. No?

Michael



More information about the lbo-talk mailing list