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1. Target practice…

While much is said of OPEC and their motivations, one thing is clear. They are not producing as much as they agreed to. In fact, OPEC has systematically missed production quotas every month for the past 13 months. With a tight market, and 3mmbbls of jet fuel still missing, the market could get even tighter in the next 6 months.


2. Breakfast blowout…

Coffee futures reached their highest level in ten years in New York this week, amid mounting concerns over tight supplies. Arabica prices have more than doubled over the past year following dry weather in Brazil, supply chain turmoil and freight costs. To tackle the short supply, roasters have tapped inventories and sent stockpiles monitored by the Futures exchange to the lowest level in 22 years.

Meanwhile lean hog futures (aka bacon!) prices have also skyrocketed due to similar supply chain and freight cost issues.

Coffee Futures:

Source: Bloomberg

Source: The Daily Shot

3. All in the ingredients…

In case you didn’t already know, Inflation isn’t just in your breakfast, it’s everywhere!

IFF, held in the Firetrail S3 Global Opportunities Fund, is a global leader in the ingredients behind your favourite consumer food. In their update this week they said they are seeing their costs go up 10% as raw material prices increase. However, they expect to completely offset the inflationary pressures through price increases. And their main competitors are doing the same. The top 3 global ingredients players have a 65% market share. So look out for higher prices at supermarkets around the world!

Portfolio Managers Patrick and James provided an update on the Fund at the Pinnacle Insight Series this week. You can watch the video here (Skip to 52:00 to see the team in action)


Source: IFF, Firetrail


This article is prepared by Firetrail Investments Pty Limited (‘Firetrail’) (ABN 98 622 377 913, AFSL 516821) as the investment manager of the Firetrail Australian High Conviction Fund (ARSN 624 136 045), the Firetrail Absolute Return Fund (ARSN 624 135 879), the Firetrail Australian Small Companies Fund (ARSN 638 792 113) and the Firetrail S3 Global Opportunities Fund (ARSN 653 717 625) (‘the Funds’). Pinnacle Fund Services Limited ('PFSL') (ABN 29 082 494 362, AFSL 238371) is the product issuer of the Fund. PFSL is not licensed to provide financial product advice. PFSL is a wholly-owned subsidiary of the Pinnacle Investment Management Group Limited (‘Pinnacle’) (ABN 22 100 325 184). The Product Disclosure Statement (‘PDS’) and Target Market Determination (‘TMD’) of the relevant Fund are available via the links below. Any potential investor should consider the PDS and TMD before deciding whether to acquire, or continue to hold units in, the Fund.

Links to the Product Disclosure Statement: WHT3810AU, WHT5134AU, WHT3093AU, WHT7794AU

Links to the Target Market Determination: WHT3810AU, WHT5134AU, WHT3093AU, WHT7794AU

For historic TMD’s please contact Pinnacle client service Phone 1300 010 311 or Email

This communication is for general information only. It is not intended as a securities recommendation or statement of opinion intended to influence a person or persons in making a decision in relation to investment. It has been prepared without taking account of any person’s objectives, financial situation or needs. Any persons relying on this information should obtain professional advice before doing so. Past performance is for illustrative purposes only and is not indicative of future performance.

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