Hedge Funds Accused of Gambling with Lives of the Poorest as Food Prices Soar

Hunger Casino

Image: World Development Movement (WDM)

Katie Allen writes in the Guardian:

Financial speculators have come under renewed fire from anti-poverty campaigners for their bets on food prices, blamed for raising the costs of goods such as coffee and chocolate and threatening the livelihoods of farmers in developing countries.

The World Development Movement (WDM) will issue a damning report on the growing role of hedge funds and banks in the commodities markets in recent years, during which time cocoa prices have more than doubled, energy prices have soared and coffee has fluctuated dramatically.

The charity’s demands for the British financial watchdog to follow the US in cracking down on such speculation comes against a backdrop of cocoa prices jumping to a 33-year high as it emerged that a London hedge fund had snapped up a large part of the world’s stock of beans. On Friday, traders say, Armajaro took delivery of 240,100 tonnes of cocoa — the biggest from London’s Liffe exchange in 14 years and equal to about 7% of annual global production, according to the Financial Times.

Read More: Guardian

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