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With the rise in food prices due to the war in Ukraine, many investors turned their attention away from food commodities while searching for safe markets. But such a move, according to experts, could further raise prices with serious consequences for the poor, as investors themselves try to make the most of this situation.
The first blow, prices took from the pandemic that disrupted global supply chains causing shortages worldwide. But Russian aggression in Ukraine after that caused prices to soar as the two countries involved in the war are the world’s leading suppliers of agricultural products such as wheat and sunflower oil. Investors now trying to make money from high demand for food and other raw materials can now put even more pressure on prices.
Investigative journalism NGO Lighthouse Reports writes that after the outbreak of war in February, investors injected about $ 1.2 billion into the two major agricultural commodity exchanges, while in 2021 investors had invested only $ 197 million in these exchanges. .
According to the news portal The Wire, the Paris wheat market, a benchmark for Europe, has also seen a significant increase in investors who have bought speculative stocks, whose main purpose is to make a profit by buying futures contracts. grain trade. This expectation is also reflected in the Chicago Mercantile Exchange, one of the major stock exchanges of the future in the world.
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