Even the barley barons, whom you might expect to be rolling in the predicted boom in cereal prices, speak through gritted teeth. They are adjusting to a new era of extreme price volatility – fantastic if, like the Cambridgeshire magnifico Oliver Walston two years ago, you\’ve managed to sell your wheat for £200 a tonne; hopeless when, as now, the same stuff only fetches £80 a tonne. These excessive fluctuations have nothing to do with traditional gluts and shortages: they\’re caused by speculators betting on commodities\’ futures.
No, sorry, but futures markets reduce price volatility, not increase it.
They also transfer the risks of price volatility from the farmer to the speculator. That\’s what they\’re there for, see?