Food prices and the financial industry

Foodwatch published a report titled “The Hunger Makers”, examining the connections between the rising food prices and the development at the financial markets. “In 2010 alone, food prices rose by one-third, causing an additional 40 million people to plunge into absolute poverty. There was another record high: by the end of March 2011, capital investors like insurance companies and pension funds had invested 600 billion dollars in bets on commodities, including corn and wheat, in the form of securities launched by investment banks and hedge funds. Is there a demonstrable relationship? Does a financial industry that has gone out of hand harm the life and health of the poorest by driving up food prices?”