...the guar-bean farmers of India have raised their prices and their living conditions because U.S. oil-industry giants need their crop: It's irreplaceable in making fracking fluid. "Now we have enough food, and we have a house made of stone," one farmer says.Oddly, the NY Times reporter calls this a rare victory for the littlest of the little guys in global trade, seemingly unaware of what's been happening around the world for the past few decades; tens of millions of people climbing out of poverty thanks to global markets. Nor is this remarked upon;
India produces about 85 percent of the world's guar. As worries rose about the prospects for this year's monsoon, which is vital for an adequate crop, speculation over guar production built to a frenzy. Trading in guar futures was even suspended, and with the monsoon still behind schedule, it remains postponed. Ramesh Abhishek, India's chief commodities market regulator, said guar trading would resume when supplies proved adequate.
"If the physical market doesn't provide enough supplies, then the futures market causes more harm than good," Abhishek said.How that is supposed to be will remain a mystery, since futures markets exist to tell participants whether 'the physical market' is likely to provide enough supplies, so suspending it's operation will merely keep everyone in the dark.