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Article

19 Jul 2010

Author:
Katie Allen, Guardian [UK]

Hedge funds accused of gambling with lives of the poorest as food prices soar

Financial speculators have come under renewed fire from anti-poverty campaigners for their bets on food prices, blamed for raising the costs of goods such as coffee and chocolate and threatening the livelihoods of farmers in developing countries. The World Development Movement (WDM) will issue a damning report today on the growing role of hedge funds and banks in the commodities markets in recent years, during which time cocoa prices have more than doubled, energy prices have soared and coffee has fluctuated dramatically...Cocoa prices jump[ed] to a 33-year high as it emerged that a London hedge fund [Armajaro] had snapped up a large part of the world's stock of beans...The charity is urging the UK government to take the lead within the European Union in demanding more transparency and tighter controls in commodities markets. [also refers to Goldman Sachs]