In the past there is no such thing as a commodities market, you bring a wagon of corn, you bring a wagon of wheat and what not, everyone at different places selling the same thing at very different prices for different quantity.
So people decided we have to regulate them. So they bring all of the corn seller, and all of the wheat seller and what not together in a centralize market place. Then they set a price for certain quantity. In this way, the buyer can purchase their stuff with a regulated price.
Then speculator come in the market as they can see if there are some dry season and the production for eg wheat is little, the price of wheat sky rocket. So the speculator, take the advantage, they enter the market for the purpose of making pure money. So the commodities market are actually not meant for speculator. It is meant for people who needs these item. But the speculator are here to provide liquidity, if someone needs to sell, the speculators are there to buy from them.
Just some sharing
