Attack on cereal price speculators
Expressing concerns about commodity trading that went way beyond the physical market, Paul Temple, chairman of Copa-Cogeca's cereal working party, said this had to be a worry for the supply chain.
"Copa-Cogeca believes that cereal prices were so low in the 2009-10 marketing year - over 50 per cent less than those prevailing in 2007 - that a rise should not have created too much cause for concern. However, the extreme price volatility is worrying and it is a problem for the commodities supply chain, so we need to ensure that markets function better."
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Hide AdTemple added that currently the EU 27 cereals production estimates for this marketing year were expected to be quite stable.
"The current volatility is also heightened by speculation. Cereals producers need a degree of market predictability to develop their businesses, ensuring production fits the growing need for food supply."