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Recent trends in food prices—higher levels and higher volatility—mirror trends predicted by a number of experts. Given the complex web of factors influencing global food security, governments of developed and developing countries, as well as international organizations, must use a comprehensive approach to prevent a food crisis reoccurrence.

With an estimated 44 million people falling into poverty since June 2010, rising food prices and increasing agricultural price volatility is at the forefront of global attention. Commodity exchanges have long been touted as a way to mitigate the effects of price volatility and increase economic efficiency in a liberalized market environment. As with other aspects of global agricultural markets, however, exchange markets are facing increasing global interdependence as traders draw on information generated both domestically and internationally.

The economic, political, social, and nutritional impacts of food price volatility and price spikes are clear. In the 2007-08 food price crisis, 33 countries saw violent riots and social unrest as a result of rising food prices; in 2011, increasing food prices have been at least partially blamed for political turnover in Tunisia and Egypt, as well as riots in several other countries.

Successful global agricultural trade hinges on open, secure agricultural markets. Such markets provide risk management by allowing for inter-regional diversification of crops and food products and by reducing price differences through market integration. In other words, secure, well-functioning markets can balance one country’s food deficit with another’s surplus, and vice versa. In this way, global trade can support global price stability and food security.

With the world's population predicted to reach 9 billion people by the year 2050, issues related to global food security have taken on a growing urgency. Rising commodities prices, adverse weather events, increased use of biofuels, global and domestic trade policies, and shifting consumption patterns in the developing world will all come into play as the world's population grows. Developing appropriate policies to address such challenges is critical to improving and maintaining global food security.