Commodity markets
Supply glut heats up Vietnam coffee derivatives market
Overproduction and resulting lower prices could spur development of nascent sector
Dalian iron ore futures contract trading volume falls away as question marks linger
Strong volumes on the first day of trading tailed off over the week although players deem it early days for determining the contract's success
Question marks surround Dalian iron ore futures contract ahead of launch
Although the market is excited about the new contract’s possibilities, uncertainties remain over physical delivery capabilities and liquidity levels
Cutting edge: Impact of execution behaviour on valuation of optional financial contracts
Expected payoff maximisation is a commonly assumed strategy in valuation. S Hossein Hosseini, Qiaoyan Bian, Jay Chen and John Jiang suggest that execution strategies may vary due to complex option structures and their resulting uncertainties. Using a…
Lack of suitable hedging options leaves Asian rice exporters exposed
Liquidity and political risk considerations hinder Thai rice producers' attempts to hedge out looming downside risk
Lawyers slam CFTC's "mindboggling" probe of EFS market it helped set up
The US Commodity Futures Trading Commission (CFTC) tried to regulate exchange of futures for swaps (EFS) transactions in 2004 and again in 2008. Then it tried to ban contingent EFS in 2010. All these attempts failed. Now the CFTC is investigating EFS…
Basis risk in palm oil market after Indonesia growth
Guessing game
Prop trading no longer an option for dealers, says Masters
Commodity businesses must have broad client base to absorb increased regulatory costs, says JP Morgan commodities head
China low grade coal ban could push up Asia swaps liquidity
Facing pressure from domestic producers and chronic pollution, China's authorities are considering clamps on low grade coal imports – potentially increasing swap activity
Asian thermal coal swaps trade picks up steam
The China-based API8 index has provided a risk management solution to the coal contract defaults that befell the industry last year and is gaining traction as one of the latest Asia-based commodity derivatives
Bank commodity VAR remains muted in Q4
Bank commodity value-at-risk remains muted in Q4
Applied risk management series: OTC commodity swaps valuation, hedging and trading
OTC commodity swaps valuation, hedging and trading
Banks retreat from commodity derivatives
Wall Street retreats
Energy Risk Europe: Indexes won’t be included in MAD, say panellists
Energy indexes may not be included in EU market abuse rules, but remain likely to be hit by further scrutiny
Ice’s decision to buy gas exchange bodes well for TTF: analysts
The Title Transfer Facility natural gas hub is expected to see increased market interest, after Ice's decision to acquire a majority share in APX-Endex's gas exchange
Exodus from Cargill’s Singapore operation
Entire palm and vegetable oil trading team exits trading house
Initiatives promote commodity derivatives in Brazil
Seeds of change
Fears over China slowdown hit commodities hedging
Undermining commodities hedging
Valuation of commodity structures in co-integrated futures markets
Valuation of commodity structures in co-integrated futures markets
Iron ore derivatives forge ahead on Chinese demand
The iron ore derivatives market is setting new volume records fuelled by higher volatility and increased involvement from Chinese participants. Although financial players are waiting for liquidity to achieve critical mass, dealers say iron ore has the…
Palm oil producers look to lock in high prices
With crude palm oil prices rising 30% in the last six months, interest in hedging downside risk from palm oil producers is on the increase. So are producers locking in prices now or waiting for the market to rise even further?
Corporate hedging strategies affected by banking regulations: survey
Despite ‘end-user’ exemptions, strengthened banking regulations are likely to impact energy corporates due to their reliance on banks and other financial firms to manage hedging programmes, says a survey by Greenwich Associates
Analysing common processes used to model energy prices
An introduction to energy spot price processes
Commodities correlation with equities, bonds - how long will it last?
Correlation conundrum