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