Brazil joins France in calls to limit price volatility

摘要

French plans to draft new rules to limit volatility in commodity markets are gaining traction after Brazil threw its weight behind the initiative this week. France last month urged the European Commission and the G20 to take action to ensure that commodity markets are kept under tighter control to avoid continuing volatility of the type seen this summer on grain markets (see AE2428, 03.09.2010, page 1). Italy and Germany have already made clear they back action against price volatility; Germany evenissued a joint statement with France last month, indicating, in the context of CAP reform, that in order to shelter farmers from the "devastating effects of growing price volatility and market crises", they were in support of updating existing market instruments such as intervention and private storage.