Abstract
The recent commodity-price boom was one of the longest and broadest of the post-World War II period, and, not unexpectedly, it reignited discussions about resource scarcity as well as proposals to ‘manage’ reminiscent of the 1970s. This contribution looks at the factors that are likely to shape commodity markets in the longer term and concludes that a stronger link between energy and non-energy commodity prices is likely to be the dominant force, especially in terms of food prices. Demand by emerging economies is unlikely to put additional pressure on the prices of food commodities, although it may create such pressure indirectly through energy prices. The effect of biofuels on food prices has not been as great as originally thought, but the use of commodities by investment funds may have been partly responsible for the 2007–08 spike.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.