Navigate / search

How Financial Speculation is Artificially Inflating Staple Food Prices

In 2011 investments in food derivatives stood at $126 billion compared to $3 billion in 2003 (World Development Movement WDM, Retrieved from web 14/08/13, http://www.wdm.org.uk/blog/infographic-how-banks-cause-hunger)

The top three food commodities – wheat, rice and maize – are also the staple diet of the world’s billion poorest people (UN FAO, The State of Food and Agriculture 2010 – 2011; Retrieved from web 14/08/13, http://www.fao.org/publications/sofa/2010-11/en/). When massive, powerful investors start pouring money into food markets, prices start behaving in strange ways. One aspect of what investors are speculating on is the scarcity of the product, which in part defines it’s value in an open market.

Read more