Agricultural prices affect food prices for 7 billion people. The volatility of agricultural product prices, due to climatic events, sudden political decisions, and over-speculation owing to mismanagement, is a constant concern. Managing the volatility is very difficult in agricultural markets. A certain level of speculation by risk-takers is essential for market liquidity. But excessive speculation fuels the volatility causing market prices to move away from the supply and demand equilibrium. Market regulation can be improved. It is possible to reduce the uncertainty that can lead to excessive speculation, by more reliable information on harvests and stocks and by greater transparency on market operations. Regional stocks could also contribute.
DECLERCK, F. (2012). Faut-il réguler les marchés des produits agricoles de base ? In: Comment nourrir le monde ? 2 ed. Éditions de l'Aube, pp. 151-186.