Food-Price Rise Puts Focus on Speculators
The run-up in global commodity prices is stirring debate in a number of countries over the role of financial speculators, a prospect that could fuel a regulatory backlash by governments keen to control food prices.
The prices of many commodities undoubtedly would have risen anyway in response to recent supply disruptions and rising demand. But some political leaders are raising questions about how much investors such as commodities traders and hedge funds might be contributing to the run-up. That could leader to anger among consumers and draw yet more fire from politicians on the dangers of derivatives trading.
All of the people “in the know” were well aware that this was going to happen! I’ll never forget when they were going to make milk a commodity on the Exchange in the 1990’s! Thank god that didn’t happen.