So that there is a direct link between the futures contract price going up and the commodity price going up because people buying and selling the actual commodity use that next month's futures price as the basis for their price in the actual commodity purchase and sale.
Carl Levin: “So that there is a direct link between the futures contract price going up and the commodity price going up because…”
Editor's note · Context
Levin explains how futures prices influence commodity pricing.
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