Tag Archives: supply and demand

January 22, 2014

Rain falls, crops increase; prices fall, then what?

For agriculture commodities, droughts mean no water, no crops, and price increases driven by scarcity. That was the scenario in 2012 in the US with drought-ravaged corn production. 2013 was another story.  The Wall Street Journal reported  that thanks to good weather conditions, “production in [&hellip…

August 19, 2013

China’s commodity slowdown chills prices

Renowned economist Daniel Yergin recently had an opinion piece, China’s Big Commodity Chill, in The Wall Street Journal that’s worth a read for anyone who wants to know what really drives price changes. You may know Yergin from his book The Prize: The Epic Quest [&hellip…

June 14, 2013

Your daily bread cost more in the 1950s than today

A post on The Economist website this week brought to our attention a new paper by David Jacks, an economist at Simon Fraser University in Canada. Prof. Jacks has piqued our interest before with a paper called Populists versus theorists: Futures markets and the volatility [&hellip…

May 20, 2013

A 1,700-year-old method for getting food to hungry people

The FT Global Commodities Summit was held in Switzerland last month, a gathering of 300 senior executives and traders to debate the key issues facing the commodities industry. The keynote speaker was Greg Page, CEO of Cargill, the world’s largest agricultural trading house. He gave [&hellip…

April 5, 2013

Swiss commodities report as reliable as clockwork

The Swiss government’s departments of Foreign Affairs (FDFA), Finance (FDF) and Economic Affairs, Education and Research (EAER) published a fascinating report recently on the commodities sector. While the report underscores the significance of the commodities industry for Switzerland – we are talking about an industry [&hellip…

January 18, 2013

Climate shocks cause price shocks

Since humans became farmers about 10,000 years ago, they have been weather dependent – harvests rely upon a good equilibrium between rain and sun. Then as now, unpredictable climate shocks significantly affect the main cereals (wheat, corn, rice, soja), fruits and vegetables and, indirectly, cattle and [&hellip…