<![CDATA[Since mid 2007 the world economy faced huge fluctuation that force the fundamentalchange in global economy structure. The price of oil reached US 147 per barrel, followed byagricultural commodities such as CPO, potatoes, soy bean , cereals and even milk or vegetables.The objective of this paper is to study primary factors that influence the price of almost allcommodities, not only fundamental factors such as demand and supply, but also non-fundamental factors. The result of the study in terms of fundamental factors showed that sky-rocketing of oil and commodities were combination of the increasing demand from AsianCountries - especially China and India – which is not by supply. The situation is made worseby non-fundamental factors such as economi downturn of American economy; geo-politicswhere every country tried to save their interest; and speculation in oil and commoditiesmarket.]]>
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