Abstract
commodity markets. At the top of page 345 an arbitrage condition is asserted for commodity prices: we have an arbitrage condition that must hold in the commodity markets: since commodities are storable, the rate of return on Treasury bills can be no greater than the expected rate of increase of commodity prices plus storage costs. But this is not an arbitrage condition in the commodity markets. That is, when the condition is violated, risk-free arbitrage does not necessarily occur. At first reading the condition in the quoted sentence appears to be
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