Pork bellies anyone? No. Live hogs then, perhaps?

These are only two of the trades available in the commodities market, which exists to provide a futures market for producers and wholesalers.

Other fancy trades available include orange juice, soya beans, cocoa and wooltops.

Major trading in commodities occurs in oil by the barrel, gold and silver by the troy ounce and semi-precious metals in volumes measured by the tonne.

We will have all noticed how the price of a loaf of bread has gone up so much recently with the surge in wheat prices. The floods will not have helped matters either, with this year's harvest expected to be the lowest yield in years.

Not since the early Seventies has there been quite so spectacular a boom in commodity prices. Today's boom, like that of the Seventies, reflects growth under way in the global economy, though we are talking about growth in the developing world, which is the key driver behind raw material prices, and metals prices in particular.

Since the start of the year, prices for global cocoa are up 20 per cent, wooltops 17 per cent, coffee 13 per cent and soyabeans a massive 109 per cent. Palm oil, a major commodity used in the production of biofuel, is up 35 per cent this year, exceeding the rise in Brent crude oil of 29 per cent. Even bigger increases have been seen in some of the metals, with tin rising by 31 per cent and copper by 42 per cent.

Booming commodity prices are a risk for inflation. For a start, they affect costs and squeeze profit margins. Producers attempt to pass on costs. For consumers, relative prices are affected initially, but if their purchases constitute a significant share of the overall basket of goods and services, a rise in the general level of prices reduces real wages.

Central bank mandates vary but, broadly, policies have been geared to normalising interest rates. This means raising them to levels deemed appropriate to sustaining non-inflationary growth. The issue now is whether interest rates need to be raised much beyond the boundaries of normalisation.

Last week, UK interest rates were increased to 5.75 per cent. It is possible we may see a further quarter point rise this year, though we are beginning to feel the Bank of England has taken interest rates up enough, and that there is a pain barrier at six per cent.

Strong global growth should support equity markets, which remain satisfactorily valued.

However, the bond market vigilantes are on the rampage, which may mean that equity markets continue to trade up, down and sideways as they did last month.

Our guess is that the bond market vigilantes will want to freshen up some and will head back to the saloon.

Government bond markets are oversold. At current yields, we feel gilts may offer a buying opportunity. They have priced in further interest rate increases. The trouble is it will not take too much to rile the vigilantes and they could soon be saddling up again.

That is the risk for equity markets. In the short term, concern over interest rates is likely to be the dominating influence. However, the fundamentals remain supportive and we suspect that the underlying trend in equity markets will remain upwards.

There's risk out there in them there hills, but there's also reward.

*Anthony Platts is an assistant director in the Teesside office of Wise Speke, and can be contacted on 01642-608855. Views expressed are the author's own and are not necessarily held throughout the Brewin Dolphin Group. Wise Speke is a division of Brewin Dolphin Securities Ltd, a member of the London Stock Exchange, authorised and regulated by the Financial Services Authority. Prices, values or income may fall against investors' interests. You should be aware that you may get less back than you invested. Investments may not always be suitable for all individuals. If you have any doubts, you should consult a professional advisor.