Treasury written question – answered at on 5 September 2011.
To ask the Chancellor of the Exchequer if he will assess the effect of trends in financial speculation on food on the ability of (a) producers and (b) end users of foodstuffs to hedge risk.
Trading in commodity markets plays an important role in providing liquidity (the volume of trades being made in a market) in agricultural futures and options markets and that liquidity is essential to the effective functioning of these markets. Against the backdrop of climate change, and the possibility that international agricultural prices, may become more volatile over time, the role of agricultural futures and options markets, and the liquidity they rely on, become more important in allowing farmers and others involved in the supply chain to hedge the price risks they face.
Yes0 people think so
No0 people think not
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