Financial Times FT.com

Insight: Commodities rally driven by fundamentals, not speculators

By Francisco Blanch

Published: June 24 2008 16:44 | Last updated: June 24 2008 16:44

The influx of investment into commodities has sparked intense debate over whether speculation has somehow caused prices to become disconnected from supply-and-demand fundamentals.

The US Senate recently heard testimonies suggesting institutional investors and hedge funds were contributing to food and energy inflation, and that commodity index-linked products were to blame for skyrocketing prices.

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