There is little evidence to support suspicions that speculators are the culprits behind rising world food prices, a new report argues. Rather, the fundamental causes are increasing demand in developing countries for protein-based diets, stagnating agricultural productivity, demand from bio-fuels producers and government controls that limit output and trading, the Conference Board of Canada report concludes. For example, it noted that some governments have reacted to food shortages by putting limits on exports to build up their inventories, or in other words by hoarding food, citing as examples India, Russia and Argentina.Instead, it urges governments and the global agricultural industry to look at ways to restructure markets to address those causes.However, the spread of securitization of food commodities can be seen as an effect, rather than a cause, of the rise in world food prices, she said, adding that it's only when prices for underlying commodities are volatile does it become worthwhile for speculators and investors to seek profit in betting on price changes.Producers are protected from falling prices by purchasing futures, it said.   more »