MORNING CALL: CRUDE 112.10 +0.51%; COTTON 97.53 -0.68%; BDI 974 -3.85%

Brent crude prices rose during Asian trading after Iran cautioned Saudi Arabia against increasing crude supplies in the event that sanctions are imposed against Iranian oil exports. Watch out for the release of US crude inventory estimates tomorrow (Thursday) which should show a 3 million barrel increase in crude inventories, according to a Bloomberg poll.

The Baltic Dry Index continued its daily decline on increased ship availability and lower commodity demand, down over 50% in the past month.

Meanwhile the World Bank published its latest forecast for 2012 and 2013 revising global GDP growth down to 2.5% and 3.1% respectively, while warning emerging economies to prepare for a sharp slowdown.

Morning Call: Crude 112.50 +1.04%; Cotton 96.37 +0.94%; BDI 1013 -3.8%

Crude prices rose in Asian trading on news that France was pushing for faster implementation of sanctions against Iran and comments from Saudi Arabia in support of average global crude prices at $US100 per barrel.

Sentiment towards commodities was also supported by faster than expected Chinese GDP growth in 2011Q4. Chinese GDP expanded by 8.9%, against expectations of an 8.7% rise although this is the slowest rate of increase for over 2 years.