3 - 7 May 2010 - Geneva, Switzerland
11 - 13 May 2010 - Bamako, MaliAtelier sur le Financement de la Filiere de la Gomme Arabique au Mali21 - 25 June 2010 - Geneva, SwitzerlandUnited Nations Cocoa Conference
See Chapter III- Managing the financialization of commodity futures trading. This chapter highlights the effects of the financial crisis on commodity markets, describing recent fluctuations and reasons for the “financialization” of commodity markets. The strong and sustained increase in primary commodity prices between 2002 and mid-2008 was accompanied by a growing presence of financial investors on commodity futures exchanges. This “financialization” of commodity markets has raised concern that much of the recent commodity price developments was largely driven by financial investors’ use of commodities as an asset class.
Primary commodity prices have tended to move in cycles that are highly correlated with fluctuations in global aggregate demand. This background note reviews recent developments in commodity markets highlighting short and medium-term price trends, factors affecting demand and supply, and the evolving pattern of trade in such sectors as agriculture, forestry, fisheries, energy, and minerals and metals. It also identifies some of the key challenges facing commodity-dependent developing countries.
UNCTAD was established as a permanent intergovernmental body with the mandate to maximize the trade, investment and development opportunities of developing countries and assist them in their efforts to integrate into the world economy on an equitable basis. For more information, visit www.unctad.org