In recent months, hedge funds, pension funds and other group investment vehicles, which strive for maximum return in minimum time, have turned the commodity market upside down. These funds of the rich and famous, facing difficulty in the stock market lately, turned their attention to the commodity market. Instead of trading in blue chips and other stocks they began trading in commodity futures -- setting off the current steep rise in commodity prices. Hedge funds and others have gained piles of cash from Middle Eastern oil-producing nations in the last three years. The price rises over the past year of all commodities including food grains are a testament to this manipulation. Minor climatic events in Australia and elsewhere have cut into food grain production, but these have been balanced by huge increases in the overall production of wheat, coarse grains, pulses and rice in India and elsewhere. India's total grain output this year is expected to be 227 million tons, compared to 214 million tons last year. This huge jump is sufficient to offset any losses in Australia and elsewhere. It is expected that in 2008 the global wheat crop will yield 646 million tons of wheat, a record and about 45 million tons higher than last year. Hence world consumers may well ask: Where is the shortage, and why these dramatic price rises?   more »