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Arabica Robusta

Gambling with the futures | SocialistWorker.org - 0 views

  • HISTORICALLY, FUTURES contracts were traded primarily between producers of commodities and consumers of commodities at large, regulated commodities exchanges. Most futures contracts eventually resulted in the actual delivery of a commodity on a set date. That's all changed in recent years. Now, the bulk of firms trading on futures exchanges are speculators with no intention of ever receiving delivery of the commodities they are trading.
  • All other things being equal, the prices of expiring futures contracts should converge with the pricing on spot markets on the date of expiration--that is, the price of oil in June should be pretty close to the price of oil futures contracts trading today that expire in June. But there are huge divergences developing. Why? Because there are too many investors chasing too few futures contracts, and this is creating demand for the underlying commodity that drives up the price of the commodity to be delivered in the future.
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    HISTORICALLY, FUTURES contracts were traded primarily between producers of commodities and consumers of commodities at large, regulated commodities exchanges. Most futures contracts eventually resulted in the actual delivery of a commodity on a set date. That's all changed in recent years. Now, the bulk of firms trading on futures exchanges are speculators with no intention of ever receiving delivery of the commodities they are trading.
Arabica Robusta

Let them eat ethanol - 0 views

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    Now, the law of supply and demand has dictated that the market for biofuels should reduce the production of corn for food by 25 percent in the U.S., triggering a rise in corn prices that has encouraged speculators to hoard crops...
Arabica Robusta

TRADE: UNCTAD "Forgets" Real Risks Faced by African Farmers - IPS ipsnews.net - 0 views

  • "The greatest enemies of the small African farmers are the agro-industrial sector; unsteady prices for food at the world markets caused by speculation; and so-called free trade agreements," Hoering told IPS.
  • "All these factors drive agriculture at the local and the global level in the opposite direction as the one the UNCTAD calls for – towards monocultures, and towards more private seed patents and other expensive farming inputs."
  • In a joint report, the German bureaux of the humanitarian organisations Oxfam and Food First Information and Action Network (FIAN) complained that three years after the start of the world food crisis, "the agro-industrial sector (in the industrialised countries), with the help of governments, continues to powerfully push the liberalisation of international food markets and the acceptance of genetically modified agriculture (GMA)." The survey, titled "Grenzenlos und billig" ("Borderless and cheap"), shows that the food industry in the developed countries uses the stalemate in the international trade negotiations to advance bilateral trade agreements with the developing countries in order to gain access to new markets for their food goods.
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  • "Instead of promoting food export (towards developing countries), the industrialised world should be supporting fair trade," Marita Wiggerthale, expert on agriculture at Oxfam in Germany, told IPS.
Arabica Robusta

UPDATE 3-Biofuels major driver of food price rise-World Bank | Markets | Reuters - 0 views

  • World Bank economist Don Mitchell concluded that biofuels and related low grain inventories, speculative activity, and food export bans pushed prices up by 70 percent to 75 percent.
  • "The large increases in biofuels production in the U.S. and EU were supported by subsidies, mandates and tariffs on imports," Mitchell said in the research, which looks at rapid rises in food prices since 2002. "Without these policies, biofuels production would have been lower and food commodity price increases would have been smaller."
  • Bob Dineen, president of the Renewable Fuels Association, said the report showed a bias by the author against biofuels and underestimates the impact of higher energy prices and a weak dollar on higher food costs. "Such a simplistic approach fails to accurately and honestly account for the myriad of factors driving food costs higher," Dineen said. "I encourage the author and the World Bank to revisit the issue without bias, taking into account the increasingly significant role biofuels are playing in reducing global oil demand."
Arabica Robusta

Pambazuka - Why land matters to Africans regardless of agriculture - 0 views

  • In both cases the agrarian question in relation to agricultural productivity and ownership of land in Africa was brought to the fore not least because of the ‘new’ wave of ‘land grabbing’ across the continent.
  • The case of South Africa and Zimbabwe’s ongoing land reforms highlights this contentious relationship. On the one hand they jointly affirm the centrality of land ownership in Africa irrespective of whether Africans use it for agricultural production or not. Yet, on the other hand, they dialectically confirm the viability of agricultural productivity among the African peasantry.
  • even such a presumable better land would hardly compensate. After all they had a rationale for being where they were in the first place. It is those kind of rationales that one needs to unpack, even today, before jumping into the bandwagon of claiming such and such land in Africa is idle and hence the imperial imperative of displacing Africans to pave way for investors.
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  • land is intimately linked to identity. It is central to the production and reproduction of community. Land thus ensures cultural continuity.
  • Although all forms of land tenure recognized by the Ugandan constitution are underpinned by patriarchy, she sharply noted, research from the ground indicates that the often demonized customary land tenure is relatively far beneficial to women when it comes to ensuring their access to land. At the risk of appearing a pro-patriarchy apologetic she aptly states: ‘Customary land tenure systems and production relations have in-built social insurance mechanisms … meant to ensure that the land needs of everybody in the community, including the needs of vulnerable members of society – aged, widowed, orphans, etc, are met.
  • Customary tenure arrangements are also designed to support livelihood systems. This is not the case for other tenure systems which support highly individualized and commercialized lifestyles. As long as women’s membership to a production unit is intact under customary tenure systems, therefore, they can have access to land, social networks and mutual support systems as well as common property resources which supports their efforts to fulfill their obligations for household food production, whether they are married, widowed or unmarried.’[4]
  • By reducing “the land question to a question of livelihoods and agriculture only” they fail to grasp that in South Africa as in other African countries “there is more to the land question which has to do with fundamental claims of legitimacy over ownership and control of the country at large”.[7]
  • This blind spot, and the persistence denial of the failure of ‘willing seller-willing buyer’ and ‘use it or lose it’ land reform models in South Africa, needs an eye salve from Zimbabwe’s Fast Track Land Reform Programme (FTLRP). Unfortunately the debate on the merits and demerits of FTLRP has been coloured if not tainted by the preoccupation on the despotic regime of President Robert Mugabe. Yet when one scratches the surface on the ground it is easy to see how such selective engagement had been informed by a similar myopic discourse on land use for agriculture.
  • ‘Needless to say, a number of scholars have never recognized this potential. On the contrary, they continue to speculate about “crony capitalism” (Patrick Bond) and the “destruction of the agriculture sector” (Horace Campbell), without having conducted any concrete research of their own, or properly interrogated the new research that has emerged.’[12]
  • The irony is that even the British Broadcasting Corporation (BBC), well known for being so quick to dismiss if not demonize any positive side of Zimbabwe’s radical land reforms, had to reluctantly swallow its pride and prejudice as it extensively quoted Scoones’ admission of being “genuinely surprised” by findings of their study on ‘Zimbabwe’s Land Reform: Myth and Reality’ that debunks these five myths perpetuated by “political and media stereotypes of abject failure” in Zimbabwe: (1) That land reform has been a total failure; (2)That most of the land has gone to political "cronies"; (3) That there is no investment on the resettled land; (4) That agriculture is in complete ruins, creating chronic food insecurity; (5)That the rural economy has collapsed.[14]
  • There has been a torrent of journalistic accounts on the success of the Zimbabwean farmers in transplanting commercial agriculture to Nigeria. Under titles like ‘White Zimbabweans Bring Change to Nigeria’, ‘White Zimbabwean farmers highlight Nigeria's agricultural failures’ , and ‘White farmers from Zimbabwe bring prosperity to Nigeria’. The impression is created of a massive transformation based on the ingenuity of the Zimbabwean farmers and without any support from Nigerian governments. But is this really so? The terms of the [Memorandum of Understanding] MOU which the Kwara State government signed with the Zimbabwean farmers, and developments surrounding the establishment of the farms, paint a different picture. It committed the State government to the provision of a series of services crucial for the development of the commercial farms. Crucially, it committed the government to provide land. The government undertook to clear choice land of the indigenous users’ right next to the River Niger. 1289 local farmers in 28 communities were uprooted from their farms to make way for the Zimbabwean farmers. The state set aside a total of N77m (US$513,333) as compensation for the displaced local farmers. Each of the initial 13 Zimbabwean farmers received a 25-year lease of 1000 hectares. The state's instrumentalist use of compensation and 'agricultural packages' (bicycles – 720 were distributed – , fertilizers, seed etc.) and the provision of long sought after communal infrastructure like electricity and additional classrooms in local schools helped to defuse local protests. [15]
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