Living in a Material World The Commodity Connection

This book provides an insider's perspective on the shadowy world of commodity traders, the people who buy and sell oil, gas, copper, cocoa, and orange juice futures. It is an expose of all the key commodities we consume; how their increasing value on the back of dwindling supply is altering the global economic and political landscape, which in turn ultimately impacts on the investor and the consumer in ways we may know little about or understand. This book explains the reasons behind the commodities boom strong global economic growth driven by the emergence of China as an industrial powerhouse at a time when commodity suppliers, miners, farmers and oil producers were least prepared. It takes a look at at the linkage from the mine, farm or oil well to the consumer via the trading room, where commodity prices are set. In doing so it presents a complete picture of the relationship between finite resources and consumer demand, so that the reader can understand how and why the price of consumables fluctuates. Is this a good time to invest in gold? Will bio-fuels solve global warming or just mean the price of a loaf of bread will rise? Reading this book will give the answers. The book also looks at the emerging trend for the price of commodities, as disparate as aluminium and wheat, to move in tandem due to the effect of the influx of 'hot money' in commodity markets - and the effect of the rapid expansion in biofuels linking the price of oil to the supply of agricultural commodities how and why this is occurring, is explained in the book. It covers the market for all of the key commodities, explored thematically in chapters dealing with energy, metals, agriculture and trading. A major focus of the book is the impact of the global boom in biofuels on agricultural commodities, and how this will create tension between the food and energy industries. As well, the book looks at the market mechanisms dealing with global warming, such as carbon permits in the European Union and the various schemes sanctioned under the Kyoto Protocol are they working? And what effect will 'carbon prices' have on power bills for consumers and industrial users? The book concludes with an assessment of who are the winners and losers of this commodities phenomenon. It will also direct readers to useful websites and resources to find out more about oil, biofuels, metals, agriculture and carbon offsetting, and how to invest in commodity markets.

Kevin Morrison has been a journalist for 17 years, working for the Financial Times, Reuters, Sydney Morning Herald and now with Argus Media, as well as contributing to other publications including BaseMetals.com. During that period he has covered the rise and fall of the dot com bubble and has spent most of this decade writing about the global commodities boom and the emergence of the carbon emissions trading sector for the Financial Times in London and for Argus. This decade Morrison has travelled around the world meeting farmers, miners, oil ministers, financiers, environmentalists, lawyers and policy advisors. His experiences during this period, during which time the commodities world has moved from the obscure to the mainstream, provide the material for this book. His interest in agriculture stems from his parents upbringing on farms and the environment has always been an area of strong interest. Morrison now lives in Sydney with his wife and daughter. This is his first book.