The search for value among the numbers
Sep 04, 2012 We will continue to consume and trade as the climate changes. But in a world where production and supply chains come under increasing strain, how far down the path is it right to exploit profit-making opportunities posed by extreme weather? And, if profit is not enough, what measure of value should we use as an alternative? So, the searing drought afflicting two thirds of the US is good for business. Or, at least, good for commodities trader Glencore, whose director of agricultural products Chris Mahoney described in a conference call how he believes soaring food prices have created a highly profitable business environment. “High prices, lots of volatility, a lot of dislocation, tightness, a lot of arbitrage opportunities [the purchase and sale of an asset in order to profit from price differences in alternative markets],” he said.