Watch the webinar.

Using Food Baskets to Manage Risk

The rapid spread of COVID-19 has led to unprecedented supply chain disruptions worldwide, as well as significant commodity price volatility. The pandemic first brought China, and now the US, to a grinding halt. Yet backward looking government indicators of economic activity remain woefully inadequate for real time analysis, particularly when the situation changes so dramatically every day. For example, our China agricultural price index anticipates China’s official food CPI by two months. Gro’s agricultural price indices were specifically designed to solve this critical market deficiency. Each index is built on the Gro data platform, which contains hundreds of thousands of unique price series at the national, regional, and local levels (e.g., cities, processing facilities, grain elevators, and ports). We aggregate this local price data for each country, using a basket that represents the food consumption expenditures within the economy. 

In This Webinar We Will Discuss

  • How comparing company-specific supply chains to their national averages enables decision-makers to better manage associated risks
  • How the indicies can be tailored to the needs of companies and investors, by either reweighting items or adjusting the items in the basket
  • How supply chain managers can use the price indices to identify bottlenecks and surplus periods
  • How analysts can forecast commodity prices along with prices for their complements and substitutes

Speakers

Steve Bernardi

Senior Research Analyst

Prior to joining Gro, Steve spent 11 years as a Commodity Analyst at Tudor Investment Corporation. In that role, his main responsibility was to forecast supply/demand balances for various commodity markets. In addition, he developed software and analytics to support portfolio managers and constructed quantitative trading strategies. Steve holds a B.A. from Brown University in Business Economics and Public & Private Sector Organizations. He was also a member of the Track & Field team at Brown.