International commodity markets are under stress.

Recognizing also that structural changes in international commodity markets, particularly the increasing concentration in trade and distribution, constitute new challenges for commodity producers and exporters in developing countries,

Recognizing that structural changes in international commodity markets, particularly the increasing concentration in trade and distribution, constitute new challenges for small farmers, commodity producers and exporters in developing countries,

2. Expresses the urgent need for supportive international policies and measures to improve the functioning of commodity markets through efficient and transparent price formation mechanisms, including commodity exchanges, and through the use of commodity price risk management instruments

3. Recognizes that developed countries account for two thirds of non fuel commodity imports, and expresses the urgent need for supportive international policies and measures to improve the functioning of the commodity markets through efficient and transparent mechanisms, including commodity exchanges

2. Expresses the urgent need for supportive international policies and measures to improve the functioning of commodity markets through efficient and transparent price formation mechanisms, including commodity exchanges, and through the use of viable and effective commodity price risk management instruments

Fourth, the commodity super cycle that helped Brazil, Russia, South Africa, and many other commodity exporting emerging markets may be over.

Oil is a fungible commodity, and markets clear at a common price.

the increasing gap between world and domestic price in commodity markets over the past 25 years , World Bank Economic Review, vol. 12, No. 3 (1998), pp. 503 526) notes that since the 1970s, commodity prices have fallen in international markets at the same time that consumer prices have risen.

They thus provide an important instrument for hedging price risks in commodity markets.

In recent decades, however, macroeconomic policy in most developing countries has become more pro cyclical , largely exacerbating the volatility of international financial markets and commodity prices.

China s 4 trillion stimulus package, unveiled in November 2008, restored confidence in global commodity markets.

And emerging markets will suffer once the US contraction and global slowdown undermines commodity prices.

While commodity prices are always more variable than those for manufactured goods and services, commodity markets over the last five years have seen extraordinary, almost unprecedented, volatility.

Even those countries that were better prepared were made painfully aware of the after effects of crisis export markets collapsed, commodity prices fell, and credit markets seized up.

As many economists, notably Jeffrey Frankel, have shown, prices on these markets are established by an auction like process as a result, commodity markets transmit the effects of monetary expansion particularly quickly.

The strong euro has helped insulate Europe from skyrocketing oil and commodity prices, which are priced in dollars on the world markets.

Some believe that the crisis was amplified by speculative trading in commodity futures, which have become an integral part of food markets.

10. Encourages efforts to promote cooperation between relevant international organizations on commodity issues

Gold prices started to rise sharply in the first half of 2008, when emerging markets were overheating, commodity prices were rising, and there was concern about rising inflation in high growth emerging markets.

There is also a risk that capital inflows to emerging markets will be mismanaged, thus fueling credit and asset bubbles. Moreover, further increases in oil, energy, and commodity prices could lead to negative terms of trade and a reduction in real disposable income in net commodity importing countries, while adding to inflationary pressures in emerging markets.

International cooperation to support commodity sector development will also be discussed, including cooperation through the International Task Force on Commodities.

Major markets for charcoal originating in Somalia are Saudi Arabia, the United Arab Emirates and Yemen, where businesses do a lucrative trade in the commodity.

One reason for this prediction is that abundant liquidity in international markets and continuing high demand from China and India may prevent commodity prices especially for agricultural products from falling as much as they did during the 2008 2009 crisis.

Emerging economies leaders fear spillover effects in commodity markets and distortions of exchange rates and capital flows that may compromise their own focus on financial stability.

Inflation will soon be the last problem that central banks will fear, as renewed slack in goods, labor, real estate, and commodity markets feeds disinflationary pressures.

Oil provides somewhat less economic power than gas because it is a fungible commodity, and interruptions of supply can be made up by purchases on world markets.

Our economic prospects have deteriorated with the decline in commodity prices, loss of traditional markets, erosion of preferences and declining levels of ODA and foreign direct investment.

International experience suggests that the balance between planning and markets shifts toward markets as countries becomes richer.

UNICEF procurement services and expertise in international commodity purchasing and supply will increasingly enhance its country programme support.

What remained was the need for cooperation among all the stakeholders in the international commodity markets, which varied enormously in terms of their economic, social and political problems, as well as in other ways, and must therefore be treated with the necessary degree of differentiation.

We need to restore order to international financial markets.

Indeed, many of these countries remain vulnerable to volatile commodity prices, financial system weaknesses, depressed demand from world markets, and shortfalls in external finance, overseas development assistance, and investment.

Commodity export prices are at record levels, global liquidity has been ample, and international interest rates have been low.

For decades, developing countries dreamed of a nirvana of sky high commodity prices and rock bottom international interest rates.

There is now also the beginning of a hard landing in emerging markets as the recession in advanced economies, falling commodity prices, and capital flight take their toll on growth.

One explanation for the difference is accelerating wage growth across developing regions, which is raising commodity demand, whereas stagnating wages in developed markets are causing the reserve price to decline.

International capital markets already have curtailed credit to these countries.

As a result, competitiveness in international markets would be reduced.

Commodity prices fell, too.

Latin America s Commodity Windfall

Other emerging markets growth prospects are even worse not least because of low commodity prices. As a result, these countries can expect lower capital inflows, again making for weak local currencies.

Its objective is to facilitate international trade and access of developing countries to international OA markets.

Irresponsible borrowing by governments in international credit markets requires irresponsible lending.

Between markets and States international cooperation through global public private partnerships.