Hedgers, funds, and who moves markets

[mr_bond@xxxxxx]

This blurb may sound ingnorant, but please no flames, it is an honest
question.

I was having a look at the CBOT's "player sheet" yesterday (for those of
you who don't know, it is a list of commercial activity in the grain
markets, distributed 5 times a day).  Anyhow, this list includes both
the activities of commercial hedgers as well as funds.

We are always hearing how it is important it is to "know what the big
boys are doing" and that it is mainly institutional activity which moves
markets.  So my question is this:

[1] If commercial hedgers by definition always have a neutral market
position (i.e. long the cash market/short futures or vice versa), then
why is their buying/selling activity useful information?  Theoretically,
they really shouldn't *care* where the price of soybeans goes.  I
thought the entire purpose of the futures markets was to transfer the
risk from hedgers to speculators.  Now why then would it matter if ADM
was buying 1000 corn contracts if the purchase is just as a hedge?

[2] From what I've seen, the vast majority of commodity funds have
dismal performance.  If this is true, why should we want to follow their
activities?

If what I have said above is true, then what moves the markets?  And if
it is not true, why not?

I realize these may be dumb questions, but if someone could enlighten me
I'd be most appreciative!

Thanks in advance,

Dave