Economists generally consider commodity futures to be the solution to higher price volatility, not its cause.

But their presence has also raised concerns that speculation in commodity futures could result in higher price volatility.

(e) Price volatility

One apparent consequence is extreme price volatility.

Also common to rentier states are short investment horizons, vulnerability to commodity price volatility euphoria when they surge, crisis when they collapse and an underdeveloped and uncompetitive manufacturing sector.

Global economic instability correlates strongly with energy price volatility.

Because energy and food security are matters of economic as well as social and political stability, policies that reduce commodity price volatility should be in the interest of producers and consumers.

Security problems and disruptions in production also increased price volatility.

It was important for the international community to take action to improve their access to trade financing, protect them against the adverse effects of trade liberalization and commodity price volatility, and reduce their transport costs.

While commodity prices are always more variable than those for manufactured goods and services, commodity markets over the last five years have seen extraordinary, almost unprecedented, volatility.

Weather related events are a major cause of price volatility on agricultural markets.

The more energy efficient one is, the lower one s vulnerability to price volatility.

2. Expresses the urgent need for supportive international policies and measures to improve the functioning of commodity markets through efficient and transparent price formation mechanisms, including commodity exchanges, and through the use of commodity price risk management instruments

How can measures to increase commodity price stability and returns from commodity exports contribute to achieving the Millennium Development Goals?

2. Expresses the urgent need for supportive international policies and measures to improve the functioning of commodity markets through efficient and transparent price formation mechanisms, including commodity exchanges, and through the use of viable and effective commodity price risk management instruments

While this is keeping price volatility in check, it is also hindering employment growth.

Oil is a fungible commodity, and markets clear at a common price.

Such measures will contribute to shaping a more stable market environment and ensure that commodity futures reduce risks and volatility.

They thus provide an important instrument for hedging price risks in commodity markets.

Since these responses are overdue, they are severe and lead to energy price spikes and volatility.

Commodity futures are formal agreements to buy or sell a specified amount of a commodity at a specified future date for a specified price.

In particular, the volatility of food and commodity prices, including petroleum prices, is seriously denting the financing capacity of many poor countries.

While not a cause of price volatility, speculation on derivatives of essential food commodities significantly worsens it.

This is called bundling. It's bringing those externalities back into the price of the commodity.

Finally, the practice means that women are treated as a commodity with a price tag.

Given these findings, trading in futures markets seems to have amplified price volatility in the short term only.

Exporters of any particular commodity should issue debt that is denominated in terms of the price of that commodity, rather than in dollars or any other currency.

The rise in commodity prices since mid 2010 China s commodity price index has increased by more than 100 since its 2009 low has had an important impact.

Admittedly, the global commodity price boom has had profound, albeit enormously complex and uncertain, effects on poverty.

But chronic hunger remains pervasive, particularly in developing countries, which are affected most by crop shortages and food price volatility.

In recent decades, however, macroeconomic policy in most developing countries has become more pro cyclical , largely exacerbating the volatility of international financial markets and commodity prices.

They argue that traders of commodity futures merely react to price signals that ultimately depend on market fundamentals.

The growth slowdown is a much greater concern than the recent asset price volatility, even if the latter grabs more headlines.

Direct and indirect measures to reduce dependence on commodity exports and to reduce the impact of commodity price instability are thus crucial if Africa is to meet the Millennium Development Goals.

The eurozone s sovereign risk problems could worsen, leading to another round of asset price corrections, global risk aversion, volatility, and financial contagion.

Recent global economic trends called for major policy initiatives, for example for export diversification, investment in infrastructure and control of price volatility.

NEW YORK The decade long commodity price boom has come to an end, with serious implications for global GDP growth.

The commodity price problem has snuck up on us, despite notable institutional reforms in macroeconomic policymaking all over the world.

Indeed, these countries are already experiencing large relative price increases for food and oil, a food emergency for the poor, and higher rates of inflation induced by commodity price shifts.

Oil is not a reliable deterrent to democracy in the long term, owing to price volatility and the development of alternative energy sources.

UNCTAD is also actively working on issues related to the impact of oil price volatility on African oil importing and oil exporting countries.

It supported the recommendation to establish commodity price agreements or stabilization tools and a fast responding grant financed shocks facility for low income commodity dependent countries, to be administered by one of the Bretton Woods institutions.

A continuation of today s commodity price boom seems more likely, for it has more of a new era story attached to it.

A lack of investment in agriculture that feeds local communities makes these countries vulnerable to international price shocks, as well as to exchange rate volatility.

It supports the purchase of equities by central banks to reduce asset price volatility, restore the value of wealth, and prevent a future market crash.