Food prices have risen sharply after the coronavirus pandemic disrupted global supply chains, causing shortages around the world. https://www.newsclick.in/Investors-Cash-Food-Commodities-Poor-go-Hungry The price of food spiked even higher following Russia's invasion of Ukraine. Both countries are major global suppliers of agricultural commodities, like wheat and sunflower oil.
Excessive trading
"[Speculative traders] basically try to jump on a bandwagon of increasing prices," said Kornherr. "And then they start trading with each other instead of meeting the hedging demand of commercial producers or traders." The price of the commodity can then become disconnected from its physical supply and demand.
Experts have called for measures to protect food systems against speculation. Banks and investment funds could abstain from food speculation as part of their environmental, social and governance (ESG) policy, for example. They've also warned against countries responding to high food prices by turning to protectionist policies.
Comment: This is a backfire of the policy to shift farmers from subsistence to market based food supply..