HAMBURG, March 20 (Reuters) - Germany’s Deutsche Bank said on Tuesday it would not issue new investment products in agricultural commodities this year while it researches the impact of investment in commodities on food prices.
In October 2011, Deutsche Bank said it would examine its commodities trading operations to see whether they drove up the price of basic foods after German pressure group Foodwatch petitioned Chief Executive Josef Ackermann.
“Deutsche Bank has established a working group that is currently looking in great detail at the causes and effects of highly volatile, and above all, rising agricultural commodities prices,” the bank said on Tuesday in its corporate responsibility report.
“While the working group continues its analysis, the bank will refrain from setting up any new exchange-traded investment products based on basic foodstuffs this year.”
“Moreover, Deutsche Bank shares the view of the G-20 countries that markets for agricultural commodities derivatives should be made more transparent and control mechanisms strengthened in order to prevent misconduct.”
The G20 group of nations in October called for more clarity of financial investment in food commodities.
Foodwatch has repeatedly criticised Deutsche Bank, although the bank is not a large player in global agricultural markets, which focus on trading food commodities such as soybeans, wheat, corn, coffee and sugar. (Reporting by Michael Hogan; Editing by Mark Potter)