Futures markets' accuracy in predicting commodity prices impacted by storability.
The article looks at how futures markets for goods that can be stored or not stored affect price discovery over time. The study found that whether a commodity is storable or not doesn't change the connection between cash and futures prices or how well futures markets predict future cash prices. However, it can impact how accurate futures markets are in estimating future cash prices. These results have important implications for decisions about producing commodities, hedging against price changes, and forecasting commodity prices.