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Commodities Market Speculation: The Risk to Food Security and Agriculture

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Publication date
05/11/2008
Number of Pages
16
Language:
English
Type of Publication:
Studies
Focus Region:
North America
Focus Topic:
Market / Trade
Institutions / Organizations
Type of Risk:
Market-related
Policy & institutional
Political
Type of Risk Managment Option:
Risk assessment
Commodity:
Crops
Author
Steve Suppan
Organization
Institute for Agriculture and Trade Policy

Amidst the food price crisis, speculation is a major contributor to extreme price volatility, which is skewing agriculture commodity markets to such a degree that both farmers and consumers are losing out. This paper reviews the role of speculation in the global food crisis. It explains the particular role of U.S. regulation of commodities markets within the global regime. Finally, it offers policy recom-mendations for how governments can better regulate markets in support of food security and employment goals.