Commodity Trade and Finance

Michael Tamvakis

Commodity Trade and Finance

Document

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

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