Data-Driven Commodity Research, The Commodity Report

The Commodity Report

Data-Driven Commodity Research

A unique newsletter about commodities and macro analysis in a weekly format.

Commodities

<ul><li>El Niño continues to receive a lot of attention and rightfully so.</li><li>However, people often confuse the climate event itself with its investment implications.</li><li>I frequently see investors arguing for broad agriculture exposure during El Niño periods.</li></ul>

El Niño continues to receive a lot of attention and rightfully so.However, people often confuse the climate event itself with its investment implications.I frequently see investors arguing for broad agriculture exposure during El Niño periods.

Why El Niño Is a Terrible Agriculture Trade

<ul><li>If you ran price risk for anything touching cocoa in 2024, you already know the story in your body, not just your spreadsheet.</li><li>New York cocoa went from around $3,400 a tonne in late 2023 to an all-time high near $12,931 in December 2024 — and then handed back close to 70% of that move through 2025.</li><li>For the desks caught on the wrong side of the timing, it was a year of margin calls, blown budgets, and uncomfortable conversations with the CFO.</li></ul>

If you ran price risk for anything touching cocoa in 2024, you already know the story in your body, not just your spreadsheet.New York cocoa went from around $3,400 a tonne in late 2023 to an all-time high near $12,931 in December 2024 — and then handed back close to 70% of that move through 2025.For the desks caught on the wrong side of the timing, it was a year of margin calls, blown budgets, and uncomfortable conversations with the CFO.

What People Can Learn from 2024 El Nino Hedging Disaster

Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Thematic (Sector/Industry)

<div><ul><li>Conventional smelting has gone largely unchanged for more than a century.</li><li>Generally operating at 1,200-1,600 degrees with toxic chemicals, smelters generate hazardous air emissions and solid waste contaminating surrounding soil and water.</li><li>Ace’s electrochemical processes replace smelting for both lead and lithium, with the lead process using food-grade organic chemicals at room temperature to produce battery-grade output with no toxic solid waste and no Scope 1 air emissions for its proprietary process.</li></ul></div>

Conventional smelting has gone largely unchanged for more than a century.Generally operating at 1,200-1,600 degrees with toxic chemicals, smelters generate hazardous air emissions and solid waste contaminating surrounding soil and water.Ace’s electrochemical processes replace smelting for both lead and lithium, with the lead process using food-grade organic chemicals at room temperature to produce battery-grade output with no toxic solid waste and no Scope 1 air emissions for its proprietary process.

WTR Symposium Series Recap: CEO on Replacing a Century-Old Smelting Process

<ul><li>With around $1.5bn of inflows till end of May, the WisdomTree Agriculture ETF (the largest pure-play agricultural commodity ETP in Europe) is enjoying its strongest year since launching in 2006.</li><li>The $1.6bn fund attracted roughly half of those inflows in the past month alone, according to Morningstar data.</li><li>This is highly unusual, given that the inflows are almost as large as the fund’s total assets under management.</li></ul>

With around $1.5bn of inflows till end of May, the WisdomTree Agriculture ETF (the largest pure-play agricultural commodity ETP in Europe) is enjoying its strongest year since launching in 2006.The $1.6bn fund attracted roughly half of those inflows in the past month alone, according to Morningstar data.This is highly unusual, given that the inflows are almost as large as the fund’s total assets under management.

$1,5 bn Agri-ETF-Trade: Big Whale is Positioning for Strong El Nino

<ul><li>It has been two weeks since my last newsletter but this week I’m back with an interesting story.</li><li>Last week the USDA confirmed the first US screwworm detection since 1966.</li><li>So far it is a volatility event, not a herd event. The dominant price driver is unchanged: the smallest US cattle herd in 75 years plus a closed Mexican border.</li></ul>

It has been two weeks since my last newsletter but this week I’m back with an interesting story.Last week the USDA confirmed the first US screwworm detection since 1966.So far it is a volatility event, not a herd event. The dominant price driver is unchanged: the smallest US cattle herd in 75 years plus a closed Mexican border.

First Screwworm Case Detected in the US - What It Means For Cattle Prices

United States

Copper is a chemical element with symbol Cu (from Latin: cuprum) and atomic number 29. It is a soft, malleable and ductile metal with very high thermal and electrical conductivity. A freshly exposed surface of pure copper has a reddish-orange color. It is used as a conductor of heat and electricity, as a building material and as a constituent of various metal alloys, such as Sterling silver used in jewelry, cupronickel used to make marine hardware and coins and constantan used in strain gauges and thermocouples for temperature measurement.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Copper (COPPER COMDTY)

Why El Niño Is a Terrible Agriculture Trade

El Niño continues to receive a lot of attention and rightfully so. However, people often confuse the climate event itself with its investment...

The Commodity Report

What People Can Learn from 2024 El Nino Hedging Disaster

New York cocoa went from around $3,400 a tonne in late 2023 to an all-time high near $12,931 in December 2024 — and then handed back close to 70%...

The Commodity Report

WTR Symposium Series Recap: CEO on Replacing a Century-Old Smelting Process

Generally operating at 1,200-1,600 degrees with toxic chemicals, smelters generate hazardous air emissions and solid waste contaminating...

Water Tower Research

$1,5 bn Agri-ETF-Trade: Big Whale is Positioning for Strong El Nino

With around $1.5bn of inflows till end of May, the WisdomTree Agriculture ETF (the largest pure-play agricultural commodity ETP in Europe) is...

The Commodity Report

First Screwworm Case Detected in the US - What It Means For Cattle Prices

It has been two weeks since my last newsletter but this week I’m back with an interesting story. Last week the USDA confirmed the first US...

The Commodity Report

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)