Description
Trends in commodities exist for one simple reason:
Hedgers don’t care about price direction.
Farmers, oil producers, airlines, and utilities all need to lock in future prices to run their businesses. They sell futures contracts to protect themselves — even if the price isn’t ideal.
This constant hedging pressure creates persistent trends that trend-following traders can profit from.
It’s not magic. It’s market structure.
#TrendFollowing #CommodityTrading #Hedging #FarmersVsTraders #TradingEdge #Commodities