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Futures trading makes food prices more volatile

lil dickie said: "Thats what this reports [url=http://www.ndtvprofit.com/homepage/storybusinessnew.asp?id=40045&template=&cache=8/14/2007%208:51:26%20PM]says[/url]. [quote] Sources have told NDTV that the Sen committee has found that food prices have become more volatile in the last three years that the futures exchanges have been trading. This confirms the worst fears of the government, many are critical of futures trading forcing the government to ban trading in wheat and some pulses in February this year. The committee says volatility has increased in this period from 7.0 per cent to 13.6 per cent. [/quote] The trading of the futures actually makes the prices of the underlying commodities more volatile. Interesting how this could affect consumers on a big enough scale."