Supporting Quotes and Links

Driving Down ‘Farmgate’ Prices in the Developing World

“Multinational food corporations have no allegiance to communities and switch from producer to producer and from country to country in search of the cheapest price. They exploit their global scope, political influence and the free trade legislation to play farmers around the world off against each other”
http://www.corporatewatch.org/?lid=2627

The Inefficiency of Speculation Driven Price Discovery

“In recent years, a number of market participants have called into question the economic efficiency of futures markets by arguing that speculative access was creating economic inefficiencies in commodity futures markets.”
http://www.icco.org/about-us/international-cocoa-agreements/cat_view/30-related-documents/31-world-cocoa-market.html

“The results obtained from regressions for a sample of five commodities traded in six exchanges reveal that these futures exchanges fail to discover prices and provide efficient hedge against the risk emerging from price volatility. The futures markets in these commodities are not efficient and futures prices are not unbiased predictors of the future ready rates. The analysis also reveals that futures markets are unable to effectively incorporate information. The time series data in respect of spot prices and futures prices exhibit presence of unit roots implying weak-form of market efficiency. …”
http://www.highbeam.com/doc/1P3-816680871.html?

To contact us, please click here.