In a report by the Food and Agriculture Organization (FAO) the price of agricultural commodities are expected to stay higher the coming 10 years, than they've been the previous 10 years. The present cost of agricultural products are expected to go down from present levels, but not far.

While beef and pork prices are expected to be around 20% higher than the last 10 years, wheat and corn are expected to be around 60% higher.

Asian markets have seen the oil prices continuing the fall from yesterday of more than $3 as worries that Asian countries are starting to feel the increased pressure of oil prices. The smaller Asian countries have begun to cut subsidies and India is believed to be thinking about increasing prices. The effect of higher oil prises could start to affect the Asian booming economies, increasing the worries of lower production. China is still heavily subsidizing oil and is not expected to cut on subsidizes until after the summer Olympics.

Militant attacks on oil instillations by the Movement for the Emancipation of the Niger Delta the last few days, has increased worries about the status of the world oil supplies. These attacks have helped support the high price of oil as the situation in Africa's largest oil producing country has no visible solution.

Worries about oil shortage due to StatoilHydro closing down oilfields with a capacity of 138,000 barrels pr. day, has pushed oil above $133 in the early trading on Monday. Oil spill being the cause of the shutdown, StatoilHydro now has reopened two of their oilfields but the Statfjord A field with a capacity of 19,000 bpd is still shut down.

For the third straight month, Indian inflation has been above the central banks target. This has raised concern that commercial lenders may be ordered to increase reserve. Should this come about, it would be the third time this year.

With the wholesale price rising Yaga Venugopal Reddy, governor of the Indian central bank, said on May 20, that India's current inflation rate was unacceptable and that the central bank is ready to respond in a swift manner. Last month the central bank unexpectedly raised the reserve requirement twice last month.

Corn traded higher yesterday settling at $6.08 as worries related to wet weather in the Midwest states, began to hit the market. Worries that to much rain could damage the crop was not helpful in an environment that looks at the present state of supplies as being tight.

Other agricultural commodities also traded higher, with July soybeans trading at $13.52 and July wheat trading at $7.93 up 9 cents per contract.

Oil raced to $135 on Wednesday going further into uncharted territory. With these higher prices, crude oils open interest has dropped 8.1% in a week, indicating that money is being removed from the market. Specialists claim that this drop in open interest is due to the fact that speculators that expected oil to drop, had been forced to exit their positions. Open interest has been sliding for some time, or since the open interest reached a top on June 16, 2007.

Oil prices have reached their highest highs in the last few days and with oil now passing the $130 price level, the voices of $140 are getting higher. Higher prices of oil are believed to be driven by a combination of production worries and tight supplies.

The price of gold has been following the high price of oil as a way for investors to hedge against inflation. With oil continuing its climb, the attraction of gold increases. Even though Saudi Arabia has claims to be increasing production, the market seems skeptical about their intentions or even ability to do so.

According to the Lehman brothers brokerage, commodities are a bubble about to burst. Record breaking commodity prices that have drawn fund managers toward commodity investment, threatening to form an asset bubble that could be about to explode soon.

Estimating total assets under management in commodity indices to have increased to $253 billion by April from only about $70 billion in 2006. About $90 billion is accounted for by financial inflows with the remaining $75 billion stemming from price appreciation of the underlying investment.