Food speculation is when investors ‘bet’ on fluctuations in prices of land and food. This could potentially lead to excessive food prices and serious social problems, as poorer groups of the population with a very limited household budget may not be able to afford to buy the food they need.
We are aware of the different views on this problem. ING has only very limited involvement in commodities, through an investment fund linked to a general commodity index (Dow Jones – UBS Commodity Index). If and when there’s a proven link between investments in commodity derivatives and increasing agricultural commodity prices volatility, ING will take appropriate measures.