Abstract
Individuals involved in commodities trading belong to two groups: hedgers and speculators. Hedgers are: 1) the producers of the commodity who want to ensure the future price of their product; and 2) the consumers of the commodity who use futures to protect their inventories from price fluctuations. In contrast, a speculator attempts toderive a rate of return on the purchase of the commodity in line with the risk he accepts in the transaction. In this regard, the speculatoris like the typical stock investor who buys stock when he expects a price increase and sell stock if he expects a price decline. He has no intention of ever taking or making a delivery of any commodity.
Recommended Citation
Malaya, Milagros F.
(1990)
"Forecasting The Price of Philippine Sugar,"
DLSU Business & Economics Review: Vol. 3:
No.
1, Article 7.
DOI: https://doi.org/10.59588/2243-786X.1471
Available at:
https://animorepository.dlsu.edu.ph/ber/vol3/iss1/7
