Morning Musing

05/11/10 -- London sugar futures have hit an all-time high this morning, with New York sugar trading at a thirty year high.

Malaysian palm oil surged to fresh more than two-year highs overnight too, breaching 3,200 ringgit, sending the overnight Globex soyoil market also up sharply to a multi-year high.

It all seems to be dollar related, and China have joined other countries overnight criticising the Fed's decision to pump USD600 billion of freshly printed money into the US economy.

Printing money you haven't got causes inflation, ask Robert Mugabe if you don't believe me. But when the country doing the printing is the US, in who's currency just about everything around the word from corn to cement is priced, it must have an inflationary knock-on effect globally too surely?

The world marketplace seems to think so, and a severe bout of inflation jitters has got the world and his wife buying commodities to inflation-proof themselves.

A glance down just a few of this mornings headlines:

  • Coffee Jumps to 13-Year High on Supply Concern

  • Fears for Indian supplies send sugar to fresh high

  • Crude oil rises to 2-year high above USD87.00

  • Palm Oil Trades Near 27-Month Peak on Crude Gain, Tight Supply

  • Gold at record, copper, oil at highest since 2008

  • Rubber's jump to 30-year top may just be the start

  • Have you spotted the trend yet?