The boom in commodity prices is absolutely show no signs of abating, rewriting new highs over the past 24 hours. Coal is trading near $ 10 thousand per metric ton, triple growth since late 2008. Rubber and sugar at record highs. Prices per barrel Brent crude reached a 28-month high at $ 103 this morning, a 50% increase in nine months. According to the index of the Food and Agriculture Organization (FAO), food prices in the world jumped another 3.4% last month to a new record level, followed by a powerful jump in sugar prices, everyday products, oilseeds and wheat. Since 2002, the index of food prices tripled. In India, food inflation was 17% y / y in the week that ended Jan. 22, after 77% rise in prices for vegetables.It is difficult to overestimate the negative impact of price hikes in agricultural and agricultural prices in developing countries. For those countries where incomes are relatively low, and high dependence on imports, an extraordinary leap in commodity prices is a very significant tightening of financial conditions. And do not be surprised by the current rush among politicians in these countries right now, as recent events in Tunisia and Egypt. Will actually be surprised if we see more violent protests in the coming weeks on the broader list of countries. For emerging markets, inflation is now - the number one problem. For the forex market, this means continued growth in the major currencies: the euro, pound, Swiss franc, Norwegian krone and the Aussie - against the currencies of developing countries.
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