Global food crisis fears justified: Regulations needed to curb speculative trading.
The high and volatile prices of food are causing concerns about a global food crisis. Research shows that regulating commodity futures markets to limit excessive trading can help stabilize prices. Contrary to some beliefs, trading volume in futures markets does not always keep prices stable or reflect the true value of food. Therefore, it is important for regulators to put in place policies that can control speculative trading on food commodities markets.