Speculation in the commodities market has certainly risen quite a bit over the last several years.  The markets are much more liquid than they were in years past.  My cousin, a farmer, used to hedge varying percentages of his hogs and corn every year.  The speculators on the other side however, were always parties expecting delivery.

Going back several years, the only good hedges outside of stocks were interest rate hedges.  The commodity market just did not have the liquidity to support anyone other than vested parties, or the serious gamblers.  It was one of the fun situations in "East of Eden" when a future contract went south on the speculator without an interest in the industry.

Speculators on future contracts, whether stocks, bonds, interest rates, or commodities have always affected prices, both up and down.  We saw that recently when oil prices dropped and a lot of future contracts were unwound.  From the numbers I have seen, there are still a few holding contracts at $145, but if prices hold at the numbers we are at, those positions will be unwound pretty soon.  When it happens, we will see another short tern decline in oil prices.

I do have an investment in a commodities futures fund.  It is not something I would feel comfortable doing on my own.  Too much playing the hedge against the speculation for me to try on my own.

I like what the congress in considering.  Unfettered speculation, without a vested interest in the the commodity at stake seems a bit risky for our economy.