What affects the supply of oil? How important is the weather in determining grain prices? Why has the price of copper skyrocketed? This unique book analyses the economics of key commodity groups, including energy, agriculture and metals. It examines the supply/demand fundamentals of several major and minor commodities, physical characteristics, production and consumption patterns, trade flows and pricing mechanisms. It also explains the main tools used to hedge price risk, such as futures, options and swaps. This second edition has been fully revised and restructured, and contains four new chapters, including oil refining, electricity and price risk management for energy, metals and agricultural commodities This book is an indispensable reference text for students, academics and those working in the commodity business.

Very few books published so far have touched upon commodity finance and fewer still have provided a systematic explanation and analysis of the subject. It is however a subject that is relevant throughout almost every corner of the world. From food to gold, commodities are ubiquitous. In this book, Dr. W. Huang, a practitioner and a trainer, covers commodities, commodity markets, commodity trade and the finance of commodity trade. As such, practitioners such as bankers and traders in commodity finance, and those institutions operating in this field, or planning to be active in this field, will all benefit from this book. This revised and updated second edition is a hands-on summary of commodity finance, with a special chapter dedicated to real-life case studies of commodity finance. Topics covered include: – High-level overview of commodity trade and finance. – The three major sectors of commodity finance: soft commodities, hard commodities and energy – Commodity finance and emerging markets, as most commodity export countries are emerging markets countries. – The special mechanisms and products of commodity finance, from plain vanilla products to more complicated structures. The concept of Supply Chain Finance is also covered in detail. – Bank and country risk. – Risk management principles, with practical case studies. – The organization of a typical commodity finance bank. The key benefits of the book are: For bankers – how to do business and what risks should be watched for? For traders, brokers and institutional investors – how commodity finance is done and what bank instruments can be used. For students – how is commodity finance handled and developed by banks? Each chapter can be read independently. The content has been reviewed by both experts and newcomers, incorporating their comments on style and content, to ensure it is as useful and clear as possible.

What do steel, coffee and gasoline have in common? They are commodities which are globally consumed on a daily basis. Before being consumed, the materials make their way through their value chains. Traders play a key role in these chains. They match supply and demand by purchasing and selling commodities. As the commodity markets involve trillions of dollars, this leads to a substantial financing need, which has led to the emergence of the field of Trade & Commodity Finance. This book provides an accessible and comprehensive introduction to the fascinating topic of Trade & Commodity Finance. This book will be of interest both to people with a general interest in the field and to trade and finance professionals. The book contains five sections: commodities and trade; traders; industry specifics; banks; and financial analysis. Examples and illustrations from the metals industry clarify the arguments made in the text. This makes it a recommended read for every person who would like to learn more about Trade & Commodity Finance.

John MacNamara’s timely report looks at the principles and practice of structured trade and commodity finance deals and what can go wrong. It is supported by invaluable case study material. An authoritative guide to structured trade and commodity finance in emerging markets A detailed study of the problems and opportunities presented by structured trade A clear explanation of typical structures and risk mitigation techniques

A rigorous but practical introduction to the economic, financial, and political principles underlying commodity markets. Commodities have become one of the fastest growing asset classes of the last decade and the object of increasing attention from investors, scholars, and policy makers. Yet existing treatments of the topic are either too theoretical, ignoring practical realities, or largely narrative and nonrigorous. This book bridges the gap, striking a balance between theory and practice. It offers a solid foundation in the economic, financial, and political principles underlying commodities markets. The book, which grows out of courses taught by the author at Columbia and Johns Hopkins, can be used by graduate students in economics, finance, and public policy, or as a conceptual reference for practitioners. After an introduction to basic concepts and a review of the various types of commodities—energy, metals, agricultural products—the book delves into the economic and financial dynamics of commodity markets, with a particular focus on energy. The text covers fundamental demand and supply for resources, the mechanics behind commodity financial markets, and how they motivate investment decisions around both physical and financial portfolio exposure to commodities, and the evolving political and regulatory landscape for commodity markets. Additional special topics include geopolitics, financial regulation, and electricity markets. The book is divided into thematic modules that progress in complexity. Text boxes offer additional, related material, and numerous charts and graphs provide further insight into important concepts.

Authoritative, up-to-date research and analysis that provides a dramatic new understanding of the rewards-and risks-of investing in CTAs Commodity Trading Advisors (CTAs) are an increasingly popular and potentially profitable investment alternative for institutional investors and high-net-worth individuals. Commodity Trading Advisors is one of the first books to study their performance in detail and analyze the "survivorship bias" present in CTA performance data. This book investigates the many benefits and risks associated with CTAs, examining the risk/return characteristics of a number of different strategies deployed by CTAs from a sophisticated investor's perspective. A contributed work, its editors and contributing authors are among today's leading voices on the topic of commodity trading advisors and a veritable "Who's Who" in hedge fund and CTA research. Greg N. Gregoriou (Plattsburgh, NY) is a Visiting Assistant Professor of Finance and Research Coordinator in the School of Business and Economics at the State University of New York. Vassilios N. Karavas (Amherst, MA) is Director of Research at Schneeweis Partners. Francois-Serge Lhabitant (Coppet, Switzerland) is a FAME Research Fellow, and a Professor of Finance at EDHEC (France) and at HEC University of Lausanne (Switzerland). Fabrice Rouah (Montreal, Quebec) is Institut de Finance Mathématique de Montréal Scholar in the finance program at McGill University.

What affects the supply of oil? How important is the weather in determining grain prices? Why has the price of copper skyrocketed? This unique book analyses the economics of key commodity groups, including energy, agriculture and metals. It examines the supply/demand fundamentals of several major and minor commodities, physical characteristics, production and consumption patterns, trade flows and pricing mechanisms. It also explains the main tools used to hedge price risk, such as futures, options and swaps. This second edition has been fully revised and restructured, and contains four new chapters, including oil refining, electricity and price risk management for energy, metals and agricultural commodities This book is an indispensable reference text for students, academics and those working in the commodity business.