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Speculators are here to stay in agriculture commodity markets,  according to the lead analyst and president of Pro Farmer Canada.

Mike Jubinville says producers need to get used to the participation of people not directly involved in grain markets, "That participation today is probably more than we've seen ever in the history of the grain trade and that has positive elements and potential negative condensations, it's positive in the sense that it provides liquidity to the futures market, it provides a opportunity for hedging mechanisms for commercials and growers, but it does increase the potential certainly of volatile price action and I think that is something we're going to have to learn to deal with in the future."

Jubinville says that when inflation increases, investors turn to physical assets, "That may certainly encourage money heading towards that direction and wanting to own something rather than fee at pay currency and would rather own something of a hard asset value.  In an inflationary environment, people want to own hard assets and they want to buy gold and they want to buy oil and they want to buy ag commodities."

Jubinville adds that as the US dollar declines in value, more speculators will turn to commodities.