Mastering the Commodities Markets A step-by-step guide to the markets, products and their trading

by Taylor, Francesca

• ISBN13: 9780273768128
• ISBN10: 0273768123
• Edition: 1st
• Format: Paperback
• Copyright: 2012-12-20
• Publisher: Ft Pr

Summary

An introduction to commodity markets covering specific commodities such as gold, oil, rare earths, aqua and agriculture. This is a comprehensive introduction to commodities markets, written so that you can quickly scan the book before a meeting and run through the specific chapter that interests you. Designed for the non-specialist, this book covers the topics from a practical perspective, and includes statistical data, screen shots, diagrams and worked examples.

Author Biography

Francesca Taylor has a B.Sc in Geology from London University and has been active in the commodity, currency and derivatives markets for many years. She is a well-established author and her books include Mastering Derivatives Markets and Mastering Foreign Exchange and Currency Options.  She has a talent for simplifying the complex and the complicated. She now lives in the Dubai, the heart of the global oil and gas markets and has close ties with commodity traders and commodity asset managers.

Table of Contents

Acknowledgements

Contributors

 

1 Commodity Fundamentals

Commodities are an asset class in their own right

Range of commodity investments

Market developments and global drivers

Commodity prices and their effect on financial markets

Market participants

How commodities differ from other assets

Economics of commodities: spot and forward transactions

Forward curves: contango and backwardation

Understanding the ‘basis’

Commodity trading, hedging, arbitrage

Commodity indices

 

2 Key Commodity Derivatives

Background and context

Market Fundamentals

Market fundamentals: exchange traded v. OTC derivatives markets 

The major commodities exchanges

Exchange traded futures

Exchange traded options

OTC commodities derivatives

OTC commodities options (caps)

OTC commodities swaps

Regulatory reform

 

3 Oil

Steve McBain

Background and context

Crude oil production

Crude oil consumption

Crude oil refining

Geopolitics

OPEC

Definitions and key features

Oil reserves

Oil uses and applications

Oil pricing and price discovery

Freighting

Hedging and risk management

Environmental concerns

Future market developments

 

4 Gas

With featured section on natural gas trading, by Victoria Adams

Background and context

What is natural gas?

Gas measurements

Natural gas formation

Natural gas reserves

Natural gas producers

Liquefied natural gas (LNG)

Shale gas

Gas pricing and price discovery

Trading natural gas

‘Prompt’ and ‘curve’ markets

Spot trading and balancing

Exchange trading

 

5 Coal

Background and context

Range of coals

Mining and production

World production and reserves

Coal pricing and price discovery

Exchange traded markets

Trading with coal futures

Environmental concerns

Coal and carbon issues

 

6 Alternative Energy

Background and context

Measurements of electricity

Energy definitions

Hydropower

Wind power

Solar power

Biofuels

Geothermal power

 

7 Carbon and Environmental Commodities

Andrew Pisano

Background and context

Economics of climate change

An overview of emissions trading

Emissions trading schemes

Pricing and price discovery – supply and demand

Hedging and trading

The future of emissions trading

 

8 Precious Metals

Jeffrey Rhodes

Introduction – a personal view

Background and context: London Bullion Market

Bullion accounts

Supply and demand

Producers and consumers

Pricing and price discovery

Hedging and trading instruments

Technical analysis

Glossary of terms for bullion markets

 

9 Base Metals

Fabrice Tayot

Background and context

The mining lifecycle

Rehabilitation and environmental concerns

Characteristics, supply and demand of key base metals:

Pricing and price discovery

Risk management and derivatives

Outlook

 

10 Rare Earth Elements

Background and context

Definition and key features

Supply and demand

World production and reserves

Importance of China

Importance of rare earth elements in today’s markets

Defence uses of rare earth elements

REE pricing and price discovery

Key steps to project completion

Hedging and trading

Outlook for rare earth elements

 

11 Food and Agriculture

Douglas Hansen-Luke, with a featured section on Zambia by Marc-Henri Veyassrat and Bruce Danckwerts.

Background and context – what is agriculture?

Demand

Supply

Industry structure

Investing in agriculture

Agriculture in Africa – focus on Zambia

The ethics and social equity of food investment

Conclusion

 

12 Water

Background and context

Hydrological cycle and climate change

Major water resources

Population pressures

Renewable versus non-renewable resources

Africa

Water conversion and desalination

Process overview:  reverse osmosis

Process overview:  multi-stage flash distillation process

Pricing and price discovery

Concept of ‘peak water’

Future developments

 

Introduction to The Matrix Partnership

Units of Measurement

Index