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Studies from Federal Reserve Board in the Area of COVID-19 Reported (Does Financial Stress Affect Commodity Futures Traders’ Positions?): Coronavirus – COVID-19

Studies from Federal Reserve Board in the Area of COVID-19 Reported (Does Financial Stress Affect Commodity Futures Traders’ Positions?): Coronavirus – COVID-19

2025 DEC 04 (NewsRx) -- By a News Reporter-Staff News Editor at CDC & FDA Daily -- Data detailed on Coronavirus - COVID-19 have been presented. According to news reporting out of Washington, District of Columbia, by NewsRx editors, research stated, “We examine trading behavior in commodity futures markets in the United States during the 2008 Global Financial Crisis (GFC) and the COVID-19 pandemic, focusing on absolute changes and relative exposure dynamics. These crises led to distinctly different trading patterns.”

Financial support for this research came from The authors received no specific funding for this work..

Our news journalists obtained a quote from the research from Federal Reserve Board, “During the 2008 GFC, speculators rapidly closed long positions while producers facilitated these trades, shifting risk from speculators to producers. In contrast, during the COVID-19 crisis-characterized by milder financial stress and an early commodity market rally-there was not meaningful risk transfer from speculators. The impact on traders’ relative exposures was minimal in both crises. However, speculators generally showed greater sensitivity to changing financial conditions than hedgers throughout the study period.”

According to the news editors, the research concluded: “These findings highlight the varying impacts of financial stress on commodity futures markets and the importance of crisis-specific context in understanding trader behavior.”

For more information on this research see: Does Financial Stress Affect Commodity Futures Traders’ Positions? Journal of Futures Markets, 2025. Journal of Futures Markets can be contacted at: Wiley, 111 River St, Hoboken 07030-5774, NJ, USA. (Wiley-Blackwell - http://www.wiley.com/; Journal of Futures Markets - http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1096-9934)

Our news journalists report that additional information may be obtained by contacting Shengwu Du, Federal Reserve Board, Washington, DC 20551, United States. Additional authors for this research include Travis D. Nesmith and Yanggen Heppe.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1002/fut.70064. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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