January 14th

Market Report

The markets have drifted even with more bullish news coming out of S. America where the heat on the Soybeans and corn is having an impact. Overnight the US is slightly down on wheat and corn but the IGC has released a report highlighting that ag commodities are tight and finely balanced going forward. They have said that the massive Aussie crop will increase world supply of feed wheat but that doesn't feel enough to offset all the other issues facing the world.

OSR took another hit yesterday on the back of a lack of bullish news this is a market that remains very volatile and not very logical. So remains the one to watch. Coupled with this is the continued rise in oil prices which is confounding many commentators, how far can oil go?

The dollar remains weak against the major seven currencies but this only makes US Doll priced commodities look cheap...will China buy?

Inflation is still prevalent in all economies and shows no sign of 'dropping out' as the central banks are hoping. An interest rate rise is not the solution but inflation has to be tackled at some point or it risks squeezing the life out global growth.