The document summarizes commodity market developments and their implications for specific agricultural sectors, as well as an outlook on commodity prices. Key factors driving up commodity prices are discussed, such as growth in global population and income, China's increasing demand for resources, and the impact of biofuels production. Challenges facing meat producers from high feed costs are also noted. The outlook suggests that even as prices decline, they will remain above 2004 levels on average. The document concludes by reviewing recent policy responses in various countries to high food prices.