Copa-Cogeca calls for action on price speculation in commodities

摘要

At the World Economic Forum in Davos, Copa-Cogeca called for effective regulation to combat excessive price speculation in agricultural commodities in order to reduce extreme market volatility. Speaking at the Forum, Copa President Padraig Walshe warned: "When speculation runs away with itself, it results in excessive market volatility. It leaves both consumers and farmers at the mercy of speculators. This kind of speculation has to be restricted to ensure that prices reflect economic fundamentals and not the excesses of speculators. It means limiting the extremes characteristic of most financial markets. I don't claim to have the solution but more transparency and information would certainly help. Maybe also limiting the size of position or close markets when prices exceed a certain rang will help. There must also be more effective controls on outright manipulation of the market."