U.S. sets task force to probe high commodity prices

WASHINGTON (Reuters) - The Commodity Futures Trading Commission said on Tuesday it had formed an interagency task force to assess commodity markets due to the "significant strain" that high prices are placing on U.S. households.

The task force includes representatives from the CFTC, the Federal Reserve, the Department of the Treasury, the Securities and Exchange Commission, the Department of Energy and the Department of Agriculture.

It will examine investor practices, fundamental supply and demand factors, and will study the role of speculators and index traders in the commodity markets, the CFTC said in a statement.

High prices for farm commodities such as wheat, corn, and rice, along with high oil prices, have roiled U.S. and world markets in recent months.

The U.S. Department of Agriculture is forecasting sharp increases this year in U.S. food prices, expected to rise by 5 percent in the largest increase since 1990.

Oil prices, meanwhile, have broken record after record, with U.S. crude coming close to $140 a barrel last Friday.

Some onlookers point to increased speculation on commodity markets as one culprit for the record prices and remarkable volatility.

(Reporting by Russell Blinch; Editing by Christian Wiessner)