I'm not quite sure how to quantify the following, but  I wonder to what extent Crude Oil and other commodities ETFs  (In particular Agricultural) are putting upside pressure on cash and futures markets. In my younger days few were the players in these markets, but today's easily accessible commodities markets could mean more investors are hedging their positions via etfs. In turn the banks that manage the etfs are compelled to hedge the funds by "covering" purchases and sales of the investors. As an old banker once told me (a real banker of the old school, not one of these clowns that have managed to disrupt the world financial markets) as I was reporting to him some excellent stats on money inflows in US mutual funds : "Imagine what will happen when instead of inflows we will face outflows". It was then late 1999.


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