A report from French commodity research group Cyclope states that world commodities markets will be driven and highly affected by China throughout 2014. China has amassed huge reserves of dollars and has the financial power to highly influence, bid, and outbid on the markets since most commodities are traded in dollars. China has become the world’s second biggest buyer of beef products with imports quadrupling in recent years, and has become a key player in global dairy markets as concerns continue over the quality of local products. French wine sales are being driven by Chinese demand, and China has resumed wheat imports in 2013 for the first time in ten years. However, as goes China, so goes the market. Recently several agricultural commodities including soya, wheat and corn have all been affected by Beijing’s policy shifts. U.S. corn exports to China, the fastest growing U.S. market, have slumped since Beijing has tightened restrictions on genetically modified grains, and soybean prices and trade flows have been affected by possibly defaults by Chinese buyers because of a tightening of credit within the sector.
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