Central Valley Cooperative

Energy – higher as the dollar fades – Geopolitical support as well as firming equities – Italy bonds attracts money at a high price. January crude oil is trading $0.64 per barrel higher to $98.84 compared to $99.76 yesterday at this time. Crude oil market continues to flutter just under the $100 level with continued unrest in Syria and discussed potential embargo of Iranian oil along with a cheaper U.S. dollar. Fitch rating agency gives the U.S. until 2013 to correct its debt issues or face a downgrade. For now, the rating remains AAA, but the outlook is negative. Italian bond market continues to increase above the sustainable levels. The EU is almost certain in a recession now. Any break up will depress the European economy further. European banks are troubled and do not have the credit worthiness to buy euro bonds to keep borrowing costs lower. China is also slowing down and we do not have the transparency of the Chinese banks. India’s rupee has been crashing lower adding costs to India’s businesses and industry.