Download or read book The Financialisation of Agricultural Commodity Futures Trading and Its Impact on the 2006 2008 Global Food Crisis written by Nicola Colbran and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The subject of this article is whether the financialisation of agricultural commodity futures trading contributed to the sudden price rises in 2006-2008. It also discusses the effect of financialisation on the functioning and usefulness of futures markets, and considers whether speculation could exacerbate price volatility again. The article is not intended to be an overly technical analysis of the topic and therefore does not include detailed economic analyses or econometric modelling. Rather, it seeks to provide an objective and straightforward discussion for those generally interested in agricultural commodity markets and their impact on food security and developing countries more generally.

Download or read book Not a Game Speculation vs Food Security Regulating financial markets to grow a better future written by Marc-Olivier Herman and published by Oxfam. This book was released on with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Does Speculation Drive Commodity Prices Evidence from the Market for Corn written by Niklas Humann and published by GRIN Verlag. This book was released on 2021-09-22 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2020 in the subject Economics - Finance, grade: 1,0, University of Münster, language: English, abstract: This seminar paper reviews the literature on futures markets as well as the recent food crisis and presents an empirical investigation of the influence of (index) speculation on the corn price. My findings are in line with most of the other empirical conclusions that, rather than speculation, factors from the real and monetary economy played a role in the spike of commodity prices. For centuries, corn has been one of the most produced crops in the world, used to feed people, livestock and machines. During the last quarter of the twentieth-century, world food prices declined by more than 50 percent, thereby improving the nourishment of people all over the world. However, this extensive decline also raised calls for protectionist policies, aimed at defending the welfare of commodity producers. Starting in the early 2000s, all classes of commodities have experienced hefty price increases. The price for corn increased by more than 250 percent in roughly three years (2005-2008). The resulting food crisis devastated low-income communities around the globe, with the already large part of their income they spent on food becoming even more substantial, causing hunger and malnutrition. While a variety of explanations for this crisis have been offered, some were quick to blame excessive (index) speculation.

Download or read book Financialization of the Commodities Futures Markets and Its Effects on Prices written by Manisha Pradhananga and published by . This book was released on 2014 with total page 149 pages. Available in PDF, EPUB and Kindle. Book excerpt: After declining for almost three decades, the food price index of the Food and Agricultural Organization (FAO) rose by 90 percent between January 2002 and June 2008. Besides the magnitude, the rise in prices was remarkable for its breadth, affecting a broad range of commodities including agricultural (wheat, corn, soybeans, cocoa, coffee), energy (crude oil, gasoline), and metals (copper, aluminum). According to the US Department of Agriculture, this price spike was responsible for increasing the number of malnourished people by 80 million. These dramatic developments in prices coincided with a rapid inflow of investment into the commodities futures market -- the number of open contracts between 2001 and June 2008 increased by more than six-fold, from around 6 million to 37 million. The new investment was primarily driven by portfolio diversification motives of a new class of traders who were neither producers nor direct consumers of the underlying commodities. This dissertation examines the potential causal links between this financialization of the commodities futures market and the 2008 global spike in food prices and other commodities. The dissertation consists of three major chapters. The second chapter analyses the relationship between spot and futures markets for a range of commodities. The third and fourth chapters seek to understand the role of financialization in causing the 2008 price developments. Chapter 3 explores commodity markets individually, studying the correlation between the inflow of liquidity and price changes. Chapter 4 studies the issue at a more macro level by investigating if the inflow of investment can explain the increase in comovement of prices between unrelated commodities. My results show that i) for many commodities, prices are determined in the futures markets, and ii) financialization of the futures market was an important factor in causing the 2008 price rises for a range of commodities. These results underscore the increasingly important role of financial motive, financial markets, and financial instruments in the operation of the commodities market. The findings are especially relevant with respect to debates as to the relative efficiency of financial markets and the need to regulate them.

Download or read book Methods to Analyse Agricultural Commodity Price Volatility written by Isabelle Piot-Lepetit and published by Springer Science & Business Media. This book was released on 2011-06-10 with total page 238 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book examines the issue of price volatility in agricultural commodities markets and how this phenomenon has evolved in recent years. The factors underlying the price spike of 2007-08 appear to be global and macroeconomic in nature, including the rapid growth in demand by developing countries, the international financial crisis, and exchange rate movements. Some of these factors are new, appearing as influences on price volatility only in the last decade. Although volatility has always been a feature of agricultural commodity markets, the evidence suggests that volatility has increased in certain commodity markets. A growing problem is that agricultural price shocks and volatility disrupt agricultural markets, economic incentives and incomes. With increased globalization and integration of financial and energy markets with agricultural commodity markets, the relationships between markets are expanding and becoming more complex. When a crisis such as a regional drought, food safety scare or a financial crisis hits a particular market, policy-makers often do not know the extent to which it will impact on other markets and affect producer, consumer and trader decisions. Including contributions from experts at the World Bank, the Food and Agriculture Organization of the United Nations, the USDA, and the European Commission, the research developed throughout the chapters of this book is based on current methodologies that can be used to analyze price volatility and provide directions for understanding this volatility and the development of new agricultural policies. The book highlights the challenges facing policy makers in dealing with the changing nature of agricultural commodities markets, and offers recommendations for anticipating price movements and managing their consequences. It will be a practical guide for both present and future policy-makers in deciding on potential price-stabilizing interventions, and will also serve as a useful resource for researchers and students in agricultural economics.

Download or read book Does speculation with agricultural commodity futures cause price bubbles in the event of negative production shocks written by Tobias Thürer and published by Logos Verlag Berlin GmbH. This book was released on 2016-02-05 with total page 222 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the mid 2000s, an increasing financialization of commodity futures markets is taking place. This has fueled an ongoing discussion about the effect of financial investments on the development of commodity prices. Against this background, the trading activities of financial speculators also come to the fore. There is the concern that such speculators can cause irrational overshootings of agricultural commodity prices, e.g. in the event of global production shocks. In such an event the decrease of total supply induces a price surge menacing food security in developing countries. Yet, the question emerges whether speculation aggravates this price increase, eventually inducing a price bubble. The relevance of this concern is reinforced by the fact that due to climate change an increased frequency and severity of global agricultural production shortfalls is at stake. If speculation evokes an additional threat to food security in the event of a production shock, the political agenda should not be confined to focus solely on the adaptation to climate change. Instead, it is then also necessary to address speculative activities on agricultural commodity markets. This book scrutinises whether speculative bubbles can be identified in the event of severe global production shocks. For this, a framework for tracing the transmission of the futures price's development on the spot market is developed. Using annual data from 1979-2012 for maize it is analysed whether production shock related price bubbles occurred.

Download or read book Investments of Speculative Capital in Staple Foods written by Sebastian Schneider and published by Diplomarbeiten Agentur. This book was released on 2010-02 with total page 69 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper elalobrates on the question whether speculative capital invested on commodity futures markets has an effect on staple food, on corn in particular, between 2006 and 2008. Effects as such amount to increasing prices for this type of grain, which may be the cause for the worldwide hunger crisis. Diese Studie geht der Frage nach, inwiefern Finanzspekulationen an den Warenterminbörsen für Grundnahrungsmittel, respektive Mais (corn), die weltweite Hungersnot zwischen 2006 und 2008 ausgelöst haben, bzw. eine Mitschuld daran tragen.

Download or read book The Handbook of Global Agricultural Markets written by L. Nijs and published by Springer. This book was released on 2014-06-23 with total page 588 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is a one-stop reference for practitioners and academics in finance, business and economics, providing a holistic reference to the international agriculture business. It takes a multidisciplinary approach, looking at the issues, opportunities and investable themes in the global agricultural space, combining research and practical tools.

Download or read book The World of International Financial Centres written by Peter Yeoh and published by Kluwer Law International B.V.. This book was released on 2021-08-06 with total page 325 pages. Available in PDF, EPUB and Kindle. Book excerpt: Evidence continues to accumulate indicating that tax havens (as they are familiarly called) account for a staggering multi-trillion-dollar loss of tax revenues worldwide. Yet, as this crucially important book shows, such offshore financial centres (OFCs) represent merely the ‘low-hanging fruit’ of a massive malaise reaching into every corner of today’s global financial services landscape with the so-called New York-London axis at its root. In a biting critique and analysis of the tax and regulatory environments from which OFCs operate, the author demonstrates that OFC-like features exist in almost every jurisdiction as a virtually inevitable outcome of the transformation of economies worldwide over the past three decades, as nations and economic blocs compete for foreign investments, and as nations seek expansion of markets to accelerate growth. Covered aspects of this phenomenon include the following: the financialization process in global transactions; erosion of credibility in political establishments with regard to their ability to govern from the centre; ultralight regulatory enclaves found in parts of developed countries; public pressure demanding enhanced international cooperation and global tax reforms, now increasingly led by the US Biden administration, and increasingly likely to reach consensus among G7 economies; and momentum generated for reform of financial reporting systems by the leaked Panama and Paradise Papers, as well as the gathering impact of the COVID-19 pandemic that led to growing government involvements in national and regional economies to protect the health and economic welfares of their respective populations. With its insights into why OFCs persist despite tightening of the rules regarding tax and financial transparency, and its insistence that the blameworthiness of large-scale tax avoidance should be assessed as a global tax problem requiring coordinated and collaborative response from both developing and advanced economies, this book takes a giant step towards genuine international tax reform. It will prove of enormous value to financial institutions, multinational corporations, tax experts, and lawmakers seeking to mend a world increasingly troubled by illicit financial flows, and problems posed by large individual and corporate tax escape artists. Disclaimer: This title is in pre-production and any names, credits or associations are subject to change. The current table of contents and subject matter is for pre-release sample purposes only.

Download or read book The Palgrave Handbook of International Development written by Jean Grugel and published by Springer. This book was released on 2016-06-10 with total page 778 pages. Available in PDF, EPUB and Kindle. Book excerpt: International development is a dynamic, vibrant and complex field – both in terms of practices and in relation to framing and concepts. This collection draws together leading experts from a range of disciplines, including development economics, geography, sociology, political science and international relations, to explore persistent problems and emergent trends in international development. Building from an introduction to key development theories, this Handbook proceeds to examine key development questions relating to the changing donor and aid landscape, the changing role of citizens and the state in development, the role of new finance flows and privatization in development, the challenges and opportunities of migration and mobility, emerging issues of insecurity and concerns with people trafficking, the drugs trade and gang violence, the role of rights and activism in promoting democracy and development, the threats posed by and responses to global environmental change, and the role of technology and innovation in promoting development.

Download or read book Financialization of Commodity written by Mohammad Isleimeyyeh and published by . This book was released on 2017 with total page 228 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation studies the role of financial investors on commodity markets, which is referred as financialization of commodity. The content of the dissertation splits to theoretical and empirical work. The implemented researches are motivated by the participation of investors, who own stock portfolios, in commodity futures markets for diversification reasons. Furthermore, that diversification is likely achieved by investing in a basket of commodities. The first chapter investigates, theoretically, the interaction between commodity and stock markets. The second chapter studies, empirically, the impact of financial investors on the commodities futures risk premium. It focuses on studying three commodities: crude oil (WTI), heating oil and natural gas. The third chapter examines, theoretically, the integration between two commodity markets. We clarify the hesitating of the previous literature in finding evidences of the impact of financialization. We confirm the influential power of investment in commodity market. However, that depends on the financial investors positions taken in the futures market. Generally, financialization increases the spot prices, the futures prices and inventory levels. We find, also, that investors are a transmission channel between commodity markets. Their effects spread out restricted to the cross commodity markets correlation. Finally, stock market returns became effective determinant of the futures risk premium after 2008 financial crisis. Also, the effect of the stock returns indifferent between short and long maturities.

Download or read book Index Funds Financial Speculation with Agricultural Commodities written by Thomas Glauben and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Food Price Volatility and Its Implications for Food Security and Policy written by Matthias Kalkuhl and published by Springer. This book was released on 2016-04-12 with total page 620 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides fresh insights into concepts, methods and new research findings on the causes of excessive food price volatility. It also discusses the implications for food security and policy responses to mitigate excessive volatility. The approaches applied by the contributors range from on-the-ground surveys, to panel econometrics and innovative high-frequency time series analysis as well as computational economics methods. It offers policy analysts and decision-makers guidance on dealing with extreme volatility.

Download or read book The Challenge of Food Security written by Rosemary Gail Rayfuse and published by Edward Elgar Publishing. This book was released on 2012-01-01 with total page 319 pages. Available in PDF, EPUB and Kindle. Book excerpt: 'The Challenge of Food Security addresses one of the key development challenges of our time. It examines issues related to food security in a comprehensive manner that covers both theoretical perspectives and policy challenges. It will be a key reference book for anyone interested in issues related to food security.' Philippe Cullet, University of London, UK 'This is a timely book which addresses one of the greatest challenges for international regulation: food security. The book is a comprehensive treatment of various aspects of food security from its origins to the relationship between food security and other values, the role that commodity trading plays in exacerbating food insecurity, the importance of adequate food governance, together with specific food security problems like fish, water and genetic resources. The editors should be congratulated on a stimulating collection of essays that brings together a diverse range of scholars and which sheds real light on the complex dimensions of the food security debate.' Fiona Smith, University College London, UK This timely study addresses the pressing issue of food security through a range of interdisciplinary contributions, providing both scholarly and policy-making perspectives. It sets the discussion on food security within the little-studied context of its international legal and regulatory framework. The expert contributors explore the key issues from a development perspective and through the lens of existing governance and policy systems with a view to articulating how these systems can be made more effective in dealing with the roots of food insecurity. The book considers the root causes of food insecurity before discussing the regulatory challenges inherent in reconciling food production and sustainability to ensure both adequate supply of and equitable access to food, particularly in light of emerging issues such as food price volatility, 'land grabbing' and the need to coordinate the actions of the multitude of actors that influence food policy and regulation. It highlights the need for more equitable, transparent and coherent policy and regulatory approaches to the myriad of issues that make up the food security challenge. This cross-cutting study will appeal to researchers in law, international relations, agricultural science and food systems, as well as to policy makers in government and international organisations that engage with policy and regulation of food security issues. It will also be essential reading for professionals in non-governmental organisations that are interested in development issues in general and food security in particular.

Download or read book Stochastic Volatility written by Neil Shephard and published by Oxford University Press, USA. This book was released on 2005 with total page 534 pages. Available in PDF, EPUB and Kindle. Book excerpt: Stochastic volatility is the main concept used in the fields of financial economics and mathematical finance to deal with time-varying volatility in financial markets. This work brings together some of the main papers that have influenced this field, andshows that the development of this subject has been highly multidisciplinary.

Download or read book Reauthorization of the Commodity Futures Trading Commission written by United States. Congress. Senate. Committee on Agriculture, Nutrition, and Forestry and published by . This book was released on 2014 with total page 528 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Handbook on the Globalisation of Agriculture written by Guy M. Robinson and published by Edward Elgar Publishing. This book was released on 2015-06-29 with total page 525 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Handbook provides insights to the ways in which globalisation is affecting the whole agri-food system from farms to the consumer. It covers themes including the physical basis of agriculture, the influence of trade policies, the nature of globalis