[gumby]

That isn’t how commodity markets (which aren’t on wall st btw) work. The traders don’t now frames or, except by mistake, barges fill of coal; they sit in the middle and rarely touch it.

A farmer can sell their crop before it has grown to improve cash flow, chocolate companies can buy cocoa that they will need next year so they have a predictable price and these guys sit in the middle.

[bluedevil2k]

I didn’t say commodities traded on Wall Street, and I know usually they’re middlemen.

I’m saying Wall Street banks are the kinds of investors to sell delivery contracts and then find a way to gather water cheaply and actually deliver it (for a nice profit). Banks aren’t always just middlemen.

[malloryerik]

The contract is cash-settled so there's no opportunity to pipe in water like that.