WORLD FOOD
multi-year highs, including a two year high in corn and wheat and the highest prices for cotton in recorded history (140 years). Inventories, market positioning and changing weather patterns have played a key role in these recent price surges. The increase in prices have also been reflected in the returns of ETF Securities’ exchange-traded commodities (ETC); the cotton ETC, for example, has risen 64% year-to-date,” says Daniel Wills, Senior Analyst at ETF Securities. Key points from the report include:
• Agriculture has historically tended to have a low correlation to the business cycle due to its unique role in food production. In addition to its links to longer term emerging market demographics, its low correlation to the business cycle has recently made it popular with investors looking for a defensive investment incorporating long term growth potential.
• On a medium term basis, food prices have been trending higher as emerging markets have increased their share of global food demand due to rising populations and incomes. Food products are having to compete for finite resources such as water, land and fertiliser inputs and are increasingly being used for alternative applications such as biofuels. As an example, ethanol now accounts for approximately one-third of annual corn output in the US, up from 5% a decade ago.
• Current futures positioning in some agricultural products exceed the peak levels of the commodities boom in 2007- 2008. ETC investors have largely taken profit on positions built up over 2009 when prices were at extreme lows.
It’s too early to say if we are on the
brink of another food price crisis. Food stocks are replenished and 2010 harvests are some of the best ever – despite fires in Russia, droughts in Ukraine and floods in Pakistan. The sharp food price rises witnessed in 2007/08 was a “price crisis” not a “food crisis”. The latter is yet to come unless the necessary action and investment into the world’s agricultural system takes place. •
Guy Isherwood, Editor,
www.commodities-now.com
Sponsors of SCT
Key speakers include:
John McCauley Global Operations Manager, Cargill International SA
Daniel Suter
Global Operations, Head of Shipping, Paul Reinhart AG
Gary Acromite CIO,
Gavilon Group
Soft Commodity Trading Operations, Logistics and Technology Summit | Hotel Intercontinental Geneva | 27-28 January 2011
Media Partners
aspects of the trade need to gauge what the most effective tools and processes are to maintain high quality standards, manage operational risk, and improve end to end workflow in the supply chain and back office. SCT 2011 will demonstrate through highly practical case studies, panel discussions and presentations from market leading companies on how you can implement best practices in your business..
SCT 2011: the ‘must attend’ summit in Geneva
…For companies that want to implement best practices across logistics and trading operations
Organised by
…For businesses that want to enhance back office efficiency across all processes, systems and technology
…For executives who want to learn new strategies to execute their role more effectively
For further information please visit
www.softs2011.com or contact Pooja Samani
T: +44 20 7111 1615 | E:
poojas@international-research-networks.com
The global soft commodity trading markets are in a state of change – ensuring efficiency in the trade lifecycle has become an urgent priority. Senior practitioners across the financial and physical aspects of the trade need to gauge what the most e
Caroline Nicholls Managing Director, Global Head of Commodities, Global Banking Services, Deutsche Bank
Pierre-Yves Eloy CIO, Bunge
Mikkel Henriksen
Global Head of Freight Operations, AWB Geneva
Ed Jongenelen Head Commodities Trade Services & Chair Working Group on Documentary Payments, ABN Amro
Pamela Kirby Johnson OBE, Director General, GAFTA
Jasper Van Schaik
Regional Head Agri Commodities Europe, Rabobank
Bart Van Gils Warehousing, Lepcco
Paul Vandenberghe Head of Back Office, Armajaro Asset Management
Karan A Chanana Group Managing Director, Amira Foods
Henk
Henk Van Geurp Global Operations Director, Coffee Division, Bauche SA
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96