European Union wants market-based answer to commodities surge

Commodity prices have surged largely due to supply and demand bottlenecks and the European Union's response should be "considered and market-based" rather than rely on mandatory curbs, governments are set to agree.

Some EU countries such as France want curbs on what they see as speculators such as hedge funds making quick gains in commodities markets at the expense of consumers.

The tone of the statement, due to be endorsed by the bloc's industry ministers on Thursday (10 March), is cautious on blaming the financial sector, however, and does not call for any radical measures such as the position limits that are being introduced in the United States. Read more ...

This blog is written by Martin Little The Global Miller, published and supported by the GFMT Magazine from Perendale Publishers.