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You can find the current article at its original source at http://www.guardian.co.uk/world/2012/nov/29/un-food-prices-trading-agricultural-commodities
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| UN blames food price rises on trading in agricultural commodities | UN blames food price rises on trading in agricultural commodities |
| (4 months later) | |
| The United Nations has laid the finger of blame for food price rises on trading in agricultural commodities, but says it is the trade in futures contracts – an agreement to buy at a set price sometime in the future – rather than the actual food stocks that causes the most damage. | The United Nations has laid the finger of blame for food price rises on trading in agricultural commodities, but says it is the trade in futures contracts – an agreement to buy at a set price sometime in the future – rather than the actual food stocks that causes the most damage. |
| David Bicchetti, associate economic officer at UN conference on trade and development (UNCTAD), said "enormous, humongous" amounts of money are traded on commodities that don't actually exist. "Over $400bn [of paper money] is traded – that's 20-30 times the physical production of the commodity." | David Bicchetti, associate economic officer at UN conference on trade and development (UNCTAD), said "enormous, humongous" amounts of money are traded on commodities that don't actually exist. "Over $400bn [of paper money] is traded – that's 20-30 times the physical production of the commodity." |
| According to the World Development Movement Barclays' investment banking division, together with Goldman Sachs and Morgan Stanley are the three biggest players in the global food trade. Barclays is said to have made more than £700m from speculating on food staples since 2010. However, Barclays' investment banking boss Rich Ricci told MPs this week that the UK bank is considering pulling out of the business for reputational reasons. | According to the World Development Movement Barclays' investment banking division, together with Goldman Sachs and Morgan Stanley are the three biggest players in the global food trade. Barclays is said to have made more than £700m from speculating on food staples since 2010. However, Barclays' investment banking boss Rich Ricci told MPs this week that the UK bank is considering pulling out of the business for reputational reasons. |
| Six big banks, including Deutsche Bank and Commerzbank, have already announced they are pulling out of trading in funds linked to food commodities. | Six big banks, including Deutsche Bank and Commerzbank, have already announced they are pulling out of trading in funds linked to food commodities. |
| The US and the European Union are debating changes to legislation, which would severely limit the amount of commodity contracts banks are able to hold at any time. | The US and the European Union are debating changes to legislation, which would severely limit the amount of commodity contracts banks are able to hold at any time. |
| Glencore said: "We share the view that financial speculation in agricultural products markets can be harmful. Our business is physical – we produce, buy, store and blend commodities." | Glencore said: "We share the view that financial speculation in agricultural products markets can be harmful. Our business is physical – we produce, buy, store and blend commodities." |
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