Bakers Want To Limit Speculation

Small bakeries say speculators are raising food costs and urged the U.S. futures regulator to curb trading by funds and other big investors. “As bakers, we do not pretend to know the complex and sophisticated rules and practices of the commodity markets,” said the Independent Bakers Association in a letter to the Commodity Futures Trading


Canadian Wheat Board CEO Sees Shift In Food Pricing

Farmers in Canada, the world’s third-largest wheat exporter, are set to sow many of the millions of acres left fallow last year, even as volatile crop prices underscore a new economic reality for grain markets. After a week in which disconnected political upheaval in Libya triggered the biggest price collapse in months, the chief executive

Profit-Taking Hammers Canola

ICE Futures Canada canola contracts saw a roller-coaster of a week during the period ended Feb. 18, as the bottom finally fell out of the market and participants took profits after the steady rise over the past few months. However, after four straight days of large declines, values stabilized for a day, bounced higher and


Bank Of Canada Wary Of Commodity Market Reform

World leaders should proceed with caution in efforts to crack down on speculation in commodity markets and must first understand what is causing prices to rise, the Bank of Canada said Feb. 10. French President Nicolas Sarkozy, who is chairing the G20 this year, has put reform of the commodity derivatives market near the top

FAO Head Wants New Commodity Rules

Market deregulat ion since 1999 has fuelled speculation on commodities markets, and that needs to be corrected to curb food price volatility, the head of FAO said Feb. 3. “We have created an environment that allows pure speculation,” FAO director general Jacques Diouf told Reuters Insider. “This is something that would require the necessary corrections


EU Executive Pledges Curbs On Commodity Speculators

The European Union’s execut ive announced plans Feb. 2 to tackle speculation in commodities with new controls on trading to stop runaway prices for grain and energy. Spiralling food prices, which helped spark deadly riots that brought down the ruling regime in Tunisia, have prompted Middle Eastern neighbours to stockpile grain. Rising commodity prices have

Price Outlook Good — But Jumpy

It doesn’t seem to matter whether analysts are studying the market fundamentals, technical charts or the stars these days, they all agree on one thing. Prices are strong and there is plenty of potential for them to get stronger. But there was a caveat attached to the bullish outlook analysts dangled tantalizingly in front of


Canadian Canola Stocks Seen Tightening

Canola contracts traded on the ICE Futures Canada platform hit fresh contract highs yet again during the week ended Jan. 21, as the underlying technicals and fundamentals continue to point higher. It’s the same old story in canola as it’s been for the past couple of months. End-user demand is strong, supplies are tightening and

Goldman Sachs Cuts Commodities Exposure

Goldman Sachs’ commodities trading risk has hit a near-seven-year low, its quarterly results on Jan. 19 showed, suggesting the Wall Street giant had become less aggressive lately in taking advantage of surging oil, metals and grains prices. Goldman’s Value-at-Risk (VaR) for commodities stood at $23 million for the fourth quarter ended Dec. 31. That was