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Commerzbank Pulls out of Food Price Speculation

Aug 13, 2012

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Commerzbank’s Moral Move

By Amanda Brodhagen, Farms.com

The 2012 drought that’s hammering the Corn Belt regions in the U.S. and parts of Canada has been stirring up chaos in the food price debate with every major bank and agriculture economics expert speculating on what food prices are going to do in response to the drought. It’s been a circus of speculating opinions, instilling fear among farmers and consumers alike. For one bank speculating on food prices is a moral statement, Commerzbank one of the biggest banks in Germany has said that they will stop speculating on basic food prices as they will not play a role in artificially pushing up food prices.

"If a bank can't be sure which damage such speculation may cause, it should not offer such funds to be on the safe side," Foodwatch Germany Managing Director Thilo Bode said in a statement.

Commerzbank has eliminated all agricultural products from its Commodity fund, to ensure that their agricultural funds don’t artificially spur food prices contributing to possible hunger in some parts of the world. This is an admirable move made by Commerzbank and they should be commended on their leadership and signalling to the world that they don’t plan on exacerbating the food price scenario.

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