Financing Food: Financialisation and Financial Actors in Agriculture Commodity Markets
12 Pages Posted: 30 Apr 2010
Date Written: April 28, 2010
Abstract
This briefing paper aims to contribute to a better understanding of the so-called ‘financialisation’ of agricultural commodity markets. The briefing first explains how financial agricultural commodity markets work, with a main focus on the derivatives market, and who are the main financial actors involved. Without replicating the many existing and varying reports on the role of financial speculation in the rise and fall of food prices, the paper explains the increased role of financial speculators in the agricultural commodity markets and their impact. Since the nature of the debate about food price increases is often quite technical and intangible, this paper has avoided many technical terms and complexities. This SOMO briefing aims to allow more people than only insiders to contribute to the current discussions about reforms of the derivatives market in agricultural commodities, and their financial players.
Keywords: financialisation. commodity markets, agriculture, food prices, speculation, derivatives markets
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