My recent piece in Foreign Policy has taken the global food crisis case against Goldman to the next level . . . and just received a letter of protest from a Managing Director, which means a nerve has been hit . . .

Now available in paperback.
Winner of the Gourmand World Cookbook Award, "Best Culinary History Book, 2008."
The Best American Science and Nature Writing 2009
Includes "Wasteland"
Slice of Life: Contemporary Writers on Food
Includes "The Triumph of American Gastrosophy," a piece I wrote about the history of American diet book mania.
Frederick Kaufman: Manuel Alvarez Bravo: Photographs and Memories
« TEDxManhattan - The Measure of All Things | Main | Speculation in Global Food . . . »
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Fastpitch
I wrote the script for this documentary on fast-pitch softball.
I don't understand this at all: by what mechanism is an increasing amount of speculation in the futures market supposed to impact the current price of food? I can see that happening with a commodity you can stockpile but how's it supposed to work with something perishable like food? The speculators never hold the physical product so how can they impact the price of food which is set by the usual mechanism of supply and demand.
See also some interesting comments at Boing Boing:
http://www.boingboing.net/2011/04/29/how-goldman-sachs-cr.html
Posted by: Mickey D | May 03, 2011 at 06:43 PM
This is something of a straw that broke the camel's back rather than the entire cause of the problem. Prices certainly strained the system, but the problem was that the system was not designed to take rapid price changes gracefully. These long positions are simply reinforcing the structural problems with the food system:
http://greenreserve.blogspot.com/2011/05/water-and-food-are-strategic-resources.html
Posted by: Green Reserve | May 10, 2011 at 06:15 AM
Long-term prices are set by supply and demand. Let's say that speculation can affect spot prices, which is controversial enough (compare to metal prices here: http://ideas.repec.org/p/fip/fedgfe/2009-29.html). If the market price is set higher than the efficient price, then there should be excess supply. Where is this new excess supply sitting?
Posted by: Anonymous | May 10, 2011 at 08:17 PM
Agricultural production has natural limits.
We are hitting them.
That's where the supply is: it isn't.
See:
http://greenreserve.blogspot.com/2011/02/supply-and-demand.html
(the bit at the top)
and
http://greenreserve.blogspot.com/2011/03/open-letter-to-mom-and-dad.html
(the bit at the bottom)
Posted by: Green Reserve | May 11, 2011 at 03:08 AM