Speculation identified as gas, food price driver

Biofuels Digest
Jim Lane October 18, 2011

In Washington, the RFA reports:

“Two new reports independently concluded that speculation in the commodities market is having an unduly large effect in driving prices for goods like gasoline and food higher for all Americans. These reports come in advance of the October 18 meeting of the Commodities Futures and Trading Commission (CFTC) to discuss commodity index funds, a chief mechanism for speculative trading in the market, and in the midst of increasing angst with Wall Street business as usual as demonstrated by the Occupy movement.

“The first report from the non-profit organization Better Markets concludes, “Research analyzing commodity markets for the last 27 years shows that Wall Street’s speculative trading through commodity index funds is causing market disruptions, interfering with price discovery, increasing the costs for businesses to hedge, and needlessly pushing prices higher for all Americans. It shows how the biggest banks, all bailed out by the taxpayers in 2008, are lining their pockets at the expense of America’s families and farmers.”

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