Tag Archives: livestock

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 Read more […]

Weighing In: Reaching Your Goal Weight

“Weighing In:” will be a series of posts comparing and contrasting the impact of different weighting schemes within commodity indices. The series will be the first to feature our two headline indices, the equally weighted Dow Jones Commodity Index (DJCI) and the world production weighted S&P GSCI.  The purpose of the series is to help you reach your portfolio goals Read more […]

El Niño: ¿Dónde Está El Dinero?

Climate scientists are predicting record breaking global temperatures from an El Niño expected this year that could boost commodity prices from further disruptions in the supply chain.  This year has already been chock-full of supply shocks across many commodities such as nickel, natural gas, coffee and hogs, creating critically low inventories that will be extremely difficult to Read more […]

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 Read more […]