Commodity Trade and Finance

Index Index Adelman, M.A. 54 Africa 83 – 4 , 258 – 9 , 399 , 448 , 464 agglomeration 251 – 2 agriculture 26 , 347 – 50 , 362 ; demand 355 – 60 ; derivatives 479 – 86 , 488 – 94 , 496 – 500 ; inputs 350 ; policies 382 – 6 , 396 , 400 ; pricing 360 – 2 , 468 – 79 ; supply 351 – 5 ; trade 360 – 1 ; see also cocoa; coffee; grains; sugar Alfonso, P. 63 Alhajji, A.F. 56 alkylation 110 alloying metals 234 aluminium 282 – 3 , 295 – 6 ; demand 290 – 1 ; supply 283 – 90 ; trade 291 – 5 ; see also metals animal produce 349 – 50 arbitrageurs 206 , 322 , 479 – 80 Argentina 372 , 385 Asia Pacific: agriculture 379 – 80 , 386 , 399 ; coal 160 , 164 – 5 ; gas 134 – 6 , 149 ; oil 67 , 70 – 1 , 86 , 97 – 8 ; soft commodities 446 , 464 Asian option 229 , 343 – 4 , 498 – 9 asphalt 110 Atkin, M. 376 , 382 – 4 Australia 167 , 256 – 7 , 275 , 372 , 385 , 464 Azerbaijan 84 barley 392 barrel 4 – 5 base metals 234 bauxite 283 – 4 , 291 , 295 Bayer, K.J. 283 beet 456 – 7 Bekkala, J.A. 257 benchmarks 88 – 97 Bentzen, J. 56 Black, F. 231 , 345 , 500 blending 433 – 4 Bolis, J.L. 257 Boyle, G. 1 – 2 , 192 Brazil 85 ; coffee 423 – 5 , 428 – 31 , 437 ; iron/steel 250 , 256 , 275 ; sugar 457 – 8 , 462 , 464 Brent crude 79 – 80 , 88 – 93 Brownian motion 203 – 4 , 320 – 1 , 477 – 8 Btu 4 calendar 215 , 335 , 488 calorie 4 Canada 69 , 82 – 3 , 160 , 255 – 6 , 414 cap 225 – 6 , 338 – 9 , 382 – 3 , 400 , 493 – 5 capacity factor 184 capital 10 , 240 , 427 car 23 – 4 , 108 cash settlement 212 , 328 , 486 catalytic cracking 106 – 8 CBOT 410 , 413 CCTs 156 – 7 Chicago Board of Trade see CBOT Chile 300 – 3 , 305 China 13 , 24 , 311 ; aluminium 286 – 8 , 291 ; coal 160 , 164 – 5 , 167 – 8 , 170 ; copper 300 – 2 ; gas 149 ; grains 372 , 386 , 391 – 5 ; oil 59 , 66 – 9 , 113 , 120 – 1 ; steel 258 , 270 , 272 , 277 – 8 , 281 Churchill, W. 31 Chrystal, A. 21 climate change 156 , 165 – 6 CME 484 – 6 , 488 – 90 , 492 coal 28 , 152 – 60 , 172 – 3 ; demand 160 – 6 ; electricity 179 – 81 , 183 ; pricing 169 – 72 ; trade 166 – 9 ; see also energy coal tar 156 coarse grains 372 – 7 , 389 – 92 coating 269 cobweb model 409 – 10 cocoa 442 – 5 , 450 – 3 ; demand 449 – 50 ; supply 445 – 8 ; see also agriculture coffee 420 – 5 , 435 – 42 ; supply 425 – 30 ; see also agriculture coking 106 , 154 – 5 , 166 – 8 , 170 cold working 268 – 9 collar 228 – 9 , 342 – 3 , 497 – 8 Colombia 85 , 429 commodity exchanges see exchanges companies: aluminium 288 – 90 ; coal 168 – 70 ; coffee 441 ; copper 302 – 3 ; grain 416 – 8 ; iron 254 – 60 ; oil 30 – 2 , 35 – 6 , 40 – 2 , 50 – 2 , 74 – 7 , 80 consignment 412 – 3 consumption: energy 12 – 26 , 132 – 6 , 164 – 6 ; food 356 – 8 , 449 – 50 , 463 – 4 ; oil 57 – 60 , 116 – 21 contracts 86 , 145 , 171 – 2 ; forward 210 , 326 , 483 – 4 ; futures 210 – 5 , 326 – 9 , 484 – 8 ; LME 330 – 4 ; LTCs 145 , 246 – 7 , 270 , 272 ; option 222 – 32 , 337 – 46 , 492 – 500 ; spread 215 – 8 , 335 , 488 – 91 ; swap 218 – 21 , 335 – 7 , 492 copper 297 – 8 , 309 ; demand 303 – 4 ; pricing 307 – 9 ; supply 298 – 303 ; trade 304 – 5 ; see also metals corn 372 – 7 , 390 – 1 , 409 ; see also agriculture; grain costs 8 , 10 – 1 , 19 – 20 , 157 – 8 , 189 – 90 Côte d’Ivoire 446 – 8 , 452 cracking 105 – 7 crops 348 – 9 ; see also agriculture cross-commodity 215 – 6 , 335 , 488 – 9 crude oil see oil cubic metre/foot 6 – 7 dairy 350 Dand, R. 448 de Graaff, J. 428 demand: electricity 175 – 9 , 187 – 9 ; energy 12 – 26 , 132 – 6 , 160 – 6 ; food 355 – 60 , 386 – 96 , 430 – 5 , 449 – 50 ; metals 243 – 5 , 290 – 1 , 303 – 4 ; oil 32 , 34 – 40 , 132 – 6 ; soft commodities 430 – 5 , 449 – 50 , 462 – 4 deregulation 185 – 6 derivatives: agriculture 479 – 86 , 488 – 94 , 496 – 500 ; energy 196 – 206 , 209 – 18 , 220 – 32 ; metals 321 – 2 , 326 – 8 , 330 – 46 Deterding, H. 31 disease 365 distillates 101 – 3 , 109 – 10 Dubai 83 , 96 – 7 economic theory 8 – 9 EFP 212 , 327 – 8 , 485 EIA 18 , 129 , 165 elasticity 357 – 8 electricity 2 , 174 – 5 , 189 – 92 ; demand 175 – 9 , 187 – 9 ; supply 179 – 89 elevator 412 energy 1 – 7 ; demand 12 – 26 ; derivatives 196 – 206 , 209 – 18 , 220 – 32 ; prices 193 – 205 ; supply 7 – 12 ; see also coal; natural gas; oil equity 8 ethylene plant 111 Europe: agriculture 370 – 2 , 382 – 3 , 396 – 400 ; coal 158 – 9 ; iron ore/steel 254 – 5 , 259 – 60 , 273 – 4 ; natural gas 132 , 148 – 9 ; oil 31 – 5 , 61 , 67 , 118 ; soft commodities 431 – 3 , 437 – 41 , 464 Everett, B. 192 exchanges 214 , 328 , 362 , 439 – 42 , 484 – 6 , 488 – 90 , 492 ; see also contracts exploration 44 – 6 , 126 , 157 extraction 46 – 7 , 237 – 42 Ezekiel, M. 409 Fattouh, B. 87 , 96 Feekes scale 368 – 9 fertilisers 352 financial: crisis 39 , 202 ; institutions 42 fiscal regime 10 fish 350 Fish, P.M. 248 floor 226 – 7 , 341 – 2 , 494 – 7 food see agriculture forward contracts 210 , 326 , 483 – 4 fracking see shale gas France 420 – 1 fruits/vegetables 349 Fry, J. 442 – 3 fuel 108 – 10 , 182 furnaces 260 – 2 , 264 – 7 future prices 206 – 9 , 322 – 6 , 480 – 3 futures contracts 210 – 5 , 326 – 9 , 484 – 8 Gary, J.H. 101 , 107 gas see natural gas gasoline 108 – 9 GDP 12 – 3 geology 44 , 237 – 9 Ghana 446 Gibson, R. 205 , 321 , 479 gold 234 government policy 9 – 10 , 51 – 2 ; agriculture 347 – 8 , 361 – 2 ; grains 382 – 6 , 396 , 400 ; soft commodities 428 – 30 , 461 , 464 – 6 grades 408 grains 348 – 9 , 363 – 6 , 410 – 8 ; demand 386 – 96 ; pricing 406 – 10 ; supply 366 – 77 , 379 – 86 ; trade 396 – 406 , 416 – 8 graphite 155 – 6 Greeks 231 – 2 , 345 , 500 greenhouse gases see climate change Gülen, S.G. 56 Hall, C.M. 282 – 3 hard coal 154 , 166 Hartwick, J.M. 8 harvesting 365 – 6 hedgers 205 – 6 , 321 – 2 , 479 hedging 225 – 8 , 332 – 42 , 488 – 97 Héroult, P.L.T. 282 – 3 Horan, S.M. 56 hot rolling 268 Hotelling, H. 7 household see residential sector Huettner, D. 56 hydraulic fracturing see shale gas hydrocarbons 12 , 42 – 3 ; see also coal; natural gas; oil hydrocracking 107 hydroelectricity 181 ICCA 448 IEA 17 – 8 , 46 , 165 income 360 India 60 , 113 – 5 , 164 – 5 , 257 – 8 , 458 , 462 , 464 indifference curve 356 – 7 Indonesia 86 , 291 , 446 industrial sector 18 – 21 , 40 – 2 , 162 , 241 IOCs 40 – 1 , 51 – 3 Iran 76 – 7 iron 234 , 248 – 50 , 260 – 3 , 278 – 81 ; pricing 271 – 3 ; supply 250 – 60 ; trade 274 – 6 ISO 187 – 9 isomerisation 110 Japan 136 , 148 , 168 , 274 ; agriculture 386 , 417 ; oil 59 – 60 , 62 , 118 – 20 Johnston, D. 10 joule 3 – 4 Kaltschmitt, M. 192 Kasriel, K. 10 Kaufmann, R.K. 56 Kazakhstan 84 , 259 Keynes, J.M. 206 , 322 , 480 Kohl, W.L. 56 Kujundzic, A. 56 labour 158 , 240 , 352 – 4 , 427 , 448 , 458 – 60 Labys, W.C. 240 – 1 lags 240 – 1 land 352 , 460 Latin America 85 – 6 , 420 – 1 , 445 – 6 , 464 LCOE 189 – 91 Leffler, W.L. 45 , 101 , 108 legumes 349 Liberia 258 Libya 77 , 85 light metals 234 lignite 153 – 4 Lin, S.X. 56 Lipsey, R. 21 liquefied natural gas see LNG LME 247 – 8 , 274 , 307 , 328 – 34 LNG 142 – 7 load duration curve 178 – 9 Loderer, C. 56 London Metal Exchange see LME long term contracts see LTCs LTCs 145 , 246 – 7 , 270 , 272 lubricants 110 – 1 Malaysia 86 Marcel, V. 41 marginal utility 8 , 355 – 6 marketing: cocoa 450 – 2 ; coffee 435 – 7 ; grain 410 – 6 ; sugar 464 – 6 markets see demand; derivatives; supply Mauritania 258 measurement 2 – 7 , 126 meat 350 Mediterranean 84 – 5 merit order dispatch 187 – 8 Merton, R.C. 204 , 231 , 345 , 478 , 499 – 500 metallurgy 242 – 3 metals 233 – 5 ; demand 243 – 5 ; derivatives 321 – 2 , 326 – 8 , 330 – 46 ; fabricators 243 , 245 – 7 ; pricing 245 – 8 , 310 – 26 ; supply 235 – 43 ; see also aluminium; copper; iron; steel Mexico 85 Middle East 134 , 464 ; oil 31 – 8 , 62 – 5 , 69 – 72 , 76 – 7 , 83 , 113 minerals see metals mining 235 – 42 Mitchell, G. 128 modelling 320 – 1 , 477 – 9 ; see also Brownian motion; price series moulding 267 – 8 natural gas 124 – 32 , 150 – 1 ; demand 132 – 6 ; electricity 181 ; pricing 147 – 50 ; trade 136 – 47 ; see also energy Nelson, W. 111 – 2 Nordhaus, W.D. 7 – 8 North Sea 64 , 79 – 80 Norway 80 nuclear 2 , 181 – 2 oats 391 offsetting 212 , 327 , 484 oil 28 – 40 , 42 – 7 , 78 – 86 , 99 ; consumption 57 – 60 , 116 – 21 ; electricity 181 ; industry 40 – 2 ; ownership 50 – 3 ; pricing 73 – 8 , 86 – 98 , 148 ; production 53 – 7 ; refining 101 – 13 , 115 – 6 , 122 – 3 ; reserves 47 – 50 ; trade 60 – 72 ; see also energy oil shock 20 – 3 , 35 – 9 , 64 – 5 OPEC 35 – 8 , 54 – 7 , 65 – 6 , 70 , 76 – 8 option contracts 222 – 32 , 337 – 46 , 492 – 500 ownership see production; supply PADDs 81 – 2 parameters 231 – 2 participants 205 – 6 , 321 – 2 , 479 – 80 pests 365 petrochemicals 58 physical delivery 212 – 3 , 328 , 486 Pinney, G. 289 – 90 pipelines 130 – 2 , 138 – 42 policies see government policy politics 140 – 1 population 358 – 9 power stations 179 – 89 PRAs 88 precious metals 234 price convergence 208 – 9 , 324 , 481 price series 196 , 311 – 2 , 469 – 70 pricing: agriculture 360 – 2 , 406 – 10 , 468 – 79 ; energy 147 – 50 , 169 – 72 , 193 – 205 ; metals 245 – 8 , 271 – 4 , 295 , 307 – 26 ; oil 73 – 8 , 86 – 98 ; options 231 – 2 , 344 – 6 , 499 – 500 ; soft commodities 435 – 41 , 450 – 3 , 460 – 1 , 466 ; see also future prices; oil shock; spot prices private tender 415 privatisation see deregulation processing 251 – 2 , 267 – 9 , 427 – 8 production: costs 19 – 20 ; crops 351 – 5 , 364 – 6 ; energy 53 – 7 , 129 – 32 , 157 – 60 ; metals 252 – 60 , 300 – 3 ; soft commodities 425 – 7 , 461 – 2 ; see also supply protective put 341 – 2 PSCs 52 – 3 public tender 415 Qatar 143 – 4 quanto 230 , 344 , 499 rainfall 423 rare earths 234 – 5 raw material-product 216 – 8 , 489 – 90 Rawls, J. 8 Raymond, M.S. 45 refining 101 – 13 , 115 – 6 renewables 181 , 183 reserves: coal 158 – 60 ; gas 126 – 9 ; iron ore 252 – 60 ; oil 47 – 50 residential sector 21 – 3 , 176 resources 7 , 47 – 8 , 241 – 2 returns 196 – 9 , 312 – 5 , 470 – 3 rice 377 – 82 , 394 – 6 , 402 – 5 risk 10 roasting 434 – 5 Rockefeller, J.D. 29 – 30 Rogers, H. 148 Royal Dutch Shell 31 , 74 Russia: coal 159 ; grains 370 , 397 – 402 ; iron/steel 259 – 60 ; natural gas 130 , 132 – 4 , 140 – 1 , 151 ; oil 61 , 70 , 84 Samuel, M. 31 Saudi Arabia 65 , 69 – 70 , 78 Scholes, M. 231 , 345 Schwartz, E. 205 , 321 , 479 shale gas 125 , 127 – 30 silo see elevator smelting 285 – 6 , 299 soft commodities see cocoa; coffee; sugar soil 364 , 422 Solow, R.M. 7 – 8 South Africa 258 – 9 South America 256 soya beans 377 , 392 – 4 , 405 – 6 , 409 speculators 206 , 322 , 479 spot prices 87 – 90 , 206 – 9 , 272 – 3 , 322 – 6 , 439 – 41 , 480 – 3 spread contracts 215 – 8 , 335 , 488 – 91 Standard Oil 29 – 30 , 73 – 4 steam coal 163 , 166 – 7 , 171 steel 260 – 70 , 278 – 81 ; pricing 273 – 4 ; trade 276 – 8 Stern, J. 148 storage 94 – 5 , 136 ; theory of 206 , 322 , 480 – 1 subsidies 382 – 3 , 385 sugar 453 – 7 , 464 – 7 ; demand 462 – 4 ; supply 457 – 62 supply: electricity 179 – 89 ; energy 124 – 6 , 157 – 60 ; grains 251 – 5 , 366 – 77 , 379 – 86 ; metals 235 – 43 , 250 – 60 , 283 – 90 , 298 – 303 ; soft commodities 425 – 30 , 445 – 8 , 457 – 62 swap contracts 218 – 21 , 335 – 7 , 492 Sweden 254 – 5 Tamvakis, M. 56 tar 156 Tarbell, I. 30 Tarring, T.J. 289 – 90 tastes 360 taxonomy 233 – 5 , 348 – 50 TCRC 307 – 9 technology 9 , 20 , 239 – 40 term contracts 86 Thailand 464 theory of storage 322 , 480 – 1 therm 4 thermal cracking 105 – 6 tonne 5 – 6 trade: agriculture 360 – 1 , 396 – 406 ; energy 136 – 47 , 166 – 9 ; metals 274 – 8 , 291 – 5 , 304 – 5 ; oil 60 – 72 , 121 – 2 ; soft commodities 437 – 41 , 452 – 3 , 464 – 7 transport 23 – 5 , 58 , 360 – 1 , 414 twenty-first century 66 – 72 UK 65 , 74 , 80 , 176 – 7 , 203 Ukraine 259 – 60 , 370 unconventional oil 46 – 7 US 7 , 11 , 23 – 4 , 116 – 8 ; agriculture 383 – 5 ; coal 159 – 60 , 167 ; grains 370 , 374 – 7 , 391 , 396 – 7 , 411 – 4 ; metals 255 – 6 , 273 – 4 , 277 – 8 ; natural gas 128 – 30 , 132 , 141 – 2 , 144 – 5 , 148 – 51 ; oil 28 – 30 , 35 , 59 – 62 , 67 – 9 , 73 – 8 , 81 – 3 , 93 – 5 ; soft commodities 431 , 464 utility 8 , 355 – 6 van Houten, C.J. 443 vegetables see fruits/vegetables Venezuela 63 – 4 , 76 , 85 , 256 Vietnam 429 , 437 volatility 199 – 205 , 315 – 21 , 473 – 7 volumetric options 230 , 344 war 32 – 4 , 62 watt 4 , 174 – 5 weather 426 – 7 West Africa 83 – 4 wheat 368 – 72 , 387 – 9 Wirl, F. 56 Wood, D. 10 Working, H. 206 – 8 , 322 – 3 , 480 – 1 WTI 81 – 2 , 93 – 5 WTO 386 , 461 – 2 Yergin, D. 33 – 4 Zadoks scale 368 – 9