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<p>[QUOTE="C Jay, post: 1471517, member: 13184"]I will agree though that the market is subject to manipulation. Since we're on the subject of corn, there is one clear example from I think 2007. Oil was heading up to a point where gas was approaching 5.00 per gallon and serious money was being put into E85 and ethonal production. OPEC dumped over a billion dollars into corn futures with the intent of drive prices up. At the same time they hired a marketing/PR firm to started a "your burning food in the gas tank" campaign. The public bought into the "down side" of E85 and corn prices had sky rocketed with the blame being placed of the E85 folks. Once OPEC felt that there position was secure they backed out of corn futures and prices returned to normal levels. If I remember correctly, corn production that year was at an all time high and E85 production had little to no impact on the supply. It was about oil, not corn that drove the market.</p><p><br /></p><p>I hear a lot of theories about manipulation in the gold market, but I don't see it. Gold and silver respond to economic uncertainty nore than anything. The only clear example was the Hunt brothers and that took place in a time of economic uncertainty (rampid inflation and a run on the dollar).[/QUOTE]</p><p><br /></p>
[QUOTE="C Jay, post: 1471517, member: 13184"]I will agree though that the market is subject to manipulation. Since we're on the subject of corn, there is one clear example from I think 2007. Oil was heading up to a point where gas was approaching 5.00 per gallon and serious money was being put into E85 and ethonal production. OPEC dumped over a billion dollars into corn futures with the intent of drive prices up. At the same time they hired a marketing/PR firm to started a "your burning food in the gas tank" campaign. The public bought into the "down side" of E85 and corn prices had sky rocketed with the blame being placed of the E85 folks. Once OPEC felt that there position was secure they backed out of corn futures and prices returned to normal levels. If I remember correctly, corn production that year was at an all time high and E85 production had little to no impact on the supply. It was about oil, not corn that drove the market. I hear a lot of theories about manipulation in the gold market, but I don't see it. Gold and silver respond to economic uncertainty nore than anything. The only clear example was the Hunt brothers and that took place in a time of economic uncertainty (rampid inflation and a run on the dollar).[/QUOTE]
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