What is the impact of food commodity speculation on the realization of the right to food?


Beginning around 2005, markets for numerous agricultural commodities started to witness price increases and higher levels of volatility, with severe consequences for the right to food in poor, net food-importing countries.

There is a lively debate as to whether these developments were only the result of factors adversely affecting food supply, or whether excessive speculation in food commodities derivatives may have worsened volatility and price spikes on already tight markets.

In particular, there is reason to believe that a significant role was played by the entry into food commodity derivatives markets of powerful institutional investors such as hedge funds, pension funds and investment banks, all of which are generally unconcerned with agricultural market fundamentals. Fundamental reform of the global financial sector is therefore required in order to avert another food price crisis.

Read GIZ German Development Agency (Germany)"Cracking Down On Speculation – a Safe Bet For Tackling Hunger" (01-02-2013)
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Read The Independent (UK)The real hunger games: How banks gamble on food prices – and the poor lose out (01-04-2012)
Read Die Zeit (Germany)"Die Deutsche Bank verhält sich verantwortungslos" (25-04-2012)
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