Tag Archives: food prices
Food Inflation Bites into Income as Commodities March Higher
Inflation continues to impact consumers and policymakers in negative ways. Hedging through broad commodities has proven to buffer portfolio returns, with the S&P GSCI up 5.38% this year. Going into the year, expectations of Fed rate cuts and continued declines in the Consumer Price Index (CPI) pushed inflation concerns aside. Since then, markets have experienced…
- Categories Commodities
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- Commodities
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Climate Change May Destroy The Risk Premium
I fear the risk premium for agriculture and livestock may vanish sometime soon as climate change and El Nino drive up food prices. When investing in commodities as an asset class there are five components of return to be earned by using futures. While each component’s contribution to performance varies through time depending on the…
- Categories Commodities
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- Commodities
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3 Reasons Putin’s Nat Gas Deal Is A Big Deal
It’s not just because it took 10 years to negotiate with China or is worth $400 billion, but the new deal Gazprom signed to supply 38 billion cubic meters (bcm), which is about the amount NY state uses annually, of natural gas to China each year for the next 30 years may be a major game changer…
- Categories Commodities
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Is Climate Change Impacting Your Grocery Bill?
It doesn’t take a weatherman to point out the crazy weather we have experienced in the recent past. There are more severe droughts, storms, freezes and heat that many blame on climate change. The National Climate Assessment, that will drive Barack Obama’s environmental agenda, notes that average temperature in the US has increased by about 1.5F (0.8C) since 1895,…
- Categories Commodities, India
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Food Drives March
Commodities continue their comeback as supply shocks prevail over demand growth concerns from China. The backwardation (indicative of shortage), measured by roll yield or the excess return minus the spot return, has not only persisted from February into March but increased. March’s roll yield of 26 basis points more than doubled February’s roll yield of…
- Categories Commodities
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- Commodities
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