Title: Commodity financialization and the role of speculators
Authors: Xin Jin - University of Aberdeen (United Kingdom) [presenting]
Abstract: The aim is to investigate empirically the role of speculators in commodity financialization, which is an influx of capital into the commodity futures market and a rise of financial investors who are not interested in the physical commodities. Building a micro-foundation equilibrium model for commodity futures markets, it is shown that the speculative positions could affect both the commodity spot and futures prices. In particular the number of speculative traders drives the magnitude of the speculators effect on the prices. This hypothesis is tested using disaggregated Commitments of Traders report from Commodity Futures Trading Commission.