"Agricultural commodities and food speculation" is a topic that affects everyone. World hunger is an urgent challenge and will continue to grow in the future. Food security is a vital part of the solution. One way to help combat the challenge is to invest in soft commodities and the entire agricultural value chain.
This is certainly a controversial debate. To some people, food futures markets are simply ’betting on food’. That raises the question of whether participating in markets for soft commodities can ever be justified. Based on scientific evidence, Deutsche Bank’s position is that participation is not just a ’can’ but a ’must’. We explain the background issues and provide answers to the frequently asked questions.
The underlying questions are extremely important. Does food speculation really cause increases in price and price volatility? What really creates shortages of food staples like wheat, corn and soy in many parts of the world?
At Deutsche Bank, we examine the causes and effects from all angles: We look at how agricultural speculation can help limit risks; we ask if there is a possible link between agricultural speculation and commodity prices and we investigate what really drives food and agricultural prices up. Fundamental questions concerning commodity speculation and creating food security through agricultural investments to increase productivity and sustainability.
Explore the background issues – and discover more about an innovative food security project in Africa.
Background: Food speculation – the facts
Extensive research informs our measured judgements – we apply this principle to the intensely discussed topic of food speculation as well as others. It’s easy to make superficial judgements – but upon closer examination, the issues are more complex. Broad or yes/no answers cannot suffice.
Answers to frequently asked questions: More on food speculation – the facts
Agricultural speculation helps limit risks
Agricultural speculation plays a vital role: It helps farmers, food producers and brokers limit their price risks and secure their liquidity. Read more on...
- how the futures market for soft commodities actually works.
- how a corn farmer secures the price for his harvest on the futures market.
- what role agricultural index funds play.
Agricultural speculation and commodity prices – is there a link?
According to the latest scientific findings, index funds and agricultural speculation do not cause increases in food prices.Public opinion, however remains sceptical and governments want to regulate agricultural futures markets more strictly. Learn more about...
- the scientific findings.
- the arguments for and against agricultural speculation.
- where governments stand.
- where Deutsche Bank stands.
- the reasons why Deutsche Bank continues to offer agricultural finance products.
What drives agricultural prices?
Many people do not have enough to eat – and rising agricultural prices are one reason. Deutsche Bank is very concerned about this development and has conducted a detailed analysis to truly understand what makes prices for soft commodities so volatile. Our analysis shows that demand is growing faster than supply.
Agricultural investments to increase productivity and sustainability
Commodities speculation within agriculture is a controversial issue for many people. But to bring more food to market, agriculture has to become more productive and sustainable. That means urgently needed capital must flow into agricultural projects and the market must become more transparent. Find out...
- what needs to happen in the agricultural sector needs to guarantee food supplies
- how Deutsche Bank supports growth and change in the agricultural sector
- why we support market transparency, how commodity derivate markets support infrastructure development, and where we see investment opportunities
Africa Agriculture Trade and Investment Fund: Higher incomes. Greater Food Security.
Discover how the AATIF special fund aims to achieve higher incomes and greater food security for Africa. AATIF is an innovative public-private partnership. It was founded by KfW Development Bank and Deutsche Bank on behalf of the Federal Ministry for Economic Cooperation and Development.