Make no mistake: ensuring that PFG customers get what’s rightfully theirs is an issue of justice. But it’s also hugely important to rebuilding confidence in the futures industry. Why is this industry so important? We touched on this last week, but an article from Business Insider today also highlighted the industry’s importance when they examined a whole range of stocks that are suffering because of rising corn prices. The current extreme drought is withering crops across the Midwest, sending grain prices soaring.

Fortunately, this is precisely why the futures trade was started in the first place. Buying and selling futures contracts can alleviate these woes in several ways. For one, corn futures give these companies the ability to directly hedge against price increases. If any of these companies are holding long positions in corn futures, for instance, the value of a September contract has soared 54% since the beginning of June, potentially offsetting some of their business losses. (Disclaimer: past performance is not necessarily indicative of future results). In this way, futures contracts function as an important source of insurance for companies who depend on potentially volatile commodities.

In addition, having a market able to set future prices for commodities can help smooth out supply and demand imbalances. When corn prices were relatively high (by historical standards) earlier in the year, farmers ramped up the amount of corn planted across the country – planting more acres than at any point in the last 75 years. The drought has damaged yield expectations for much of this crop, but imagine how much worse it would be if farmers hadn’t planted such an enormous crop. Without a robust futures trade setting a price the future value of crops, farmers across the country would have a much more difficult time planning this far ahead, and supply disruptions could prove even more damaging.

When commentators label futures contracts “derivatives” with a barely-concealed sneer, it does a disservice to the fundamental role this industry plays in the economy. The futures trade is too valuable to be hobbled by the corruption and incompetence of a few.