[S&P HAS GIVEN NOBLE A DEADLINE OF THREE MONTHS IN WHICH TO RAISE A LOT OF CAPITAL, OR ELSE BE DOWNGRADED TO JUNK]
[A RATING WHICH COULD EFFECTIVELY END ITS TRADING BUSINESS, AND ULTIMATELY COULD LEAD TO A LIQUIDATION OF THE ENTIRE COMPANY]
[NOBLE GROUP’S REALIZATION OF GAINS ON COMMODITY CONTRACTS OR DERIVATIVES IS DISPUTABLE].
CURRENT IMPLIED VALUE OF NOBLE GROUP : -0.006 SGD/SHARE.
In “The Politics of the Grains: a Canadian Experience” explains why in Western Canada, farmers are deeply suspicious of the business practices of the grain companies and hostile to their positions of power, alluding to trust, the single most important concept behind any commodity trade.(Commodity Traders are providers of Trust…)
The article has also highlighted the socioeconomic factors explaining why somewhere in the political process of the early 30’s, Westerners have pushed for centralization and for more government intervention in the market. Continue reading →
As incomes have risen across Asia, people there have improved their diets, including eating more meat. China’s increasing consumption of animal protein has fueled the demand for soybeans, as soybean meal is a key ingredient in animal feeds. In 2004, China imported 9.4 million metric tons of soybeans from the U.S. By 2014, its U.S. soybean imports had more than tripled to 31.3 million metric tons. Continue reading →
The Weather Department received hourly observations for 10,000 cities worldwide, as well as telex reports and satellite maps from national weather services.
Weather technicians sorted through volumes of data, relaying relevant observations to various business divisions worldwide.
Cargill’s salt business, for example, tracked where the next major snowstorms would hit, enabling them to supply sufficient amounts of road salt to those locations, while Sunny Fresh Eggs, now Cargill Kitchen Solutions, used daily temperature readings to adjust the feed mixture for its layer hens. Continue reading →
Since nearly as much fuel and time were needed to make the return trip, whether the barge was loaded or empty, backhauling helped maximize hauling efficiency and created another revenue opportunity for Cargill.
And in the case of salt, it gave rise to a new, highly profitable industry for the company. Continue reading →
In 1932, Cargill builds the world’s then-largest terminal in Albany, New York, making it easier to move grain to the Great Lakes, the Atlantic and beyond. HEADS TO THE ATLANTIC As European customers establish offices in the US to cut … Continue reading →
On September 30, 2012, agents from the FBI contacted U.S. Customs and Border Protection at O’Hare International Airport in Chicago with an urgent request. They wanted bags from two passengers on an outbound flight to Beijing pulled for immediate inspection. The passengers didn’t track as dangerous criminals: Li Shaoming, president of Beijing Kings Nower Seed Science & Technology, a large Chinese agricultural company that develops corn, rice, cotton, and canola seeds, Continue reading →
In 1922, a Russian-Jewish immigrant named Dr. Julius Hendel came to Cargill in search of a job.
Hendel was an expert in grain, well on his way to becoming one of the first in the United States to hold a doctorate in an agribusiness-related field.
He also shared the same adventurous spirit as John MacMillan, Jr., Cargill’s vice president at the time. Continue reading →
[CRUCIAL POST EVERYONE: IT WAS WRITTEN BY AN ASSET OPERATOR WHO UNDERSTANDS THE PEOPLE AT THE OPPOSITE SIDE, WHO HE IS FACING IN THE MARKET SO THE REASONS WHY IT IS VERY DIFFICULT TO MAKE THE BREAK-EVEN. Continue reading →
We maintain the call made in Noble Group’s Kurtosis Awakening Moment for the Commodity Markets in which we profiled the ongoing fast-motion trainwreck of Asia’s largest commodity trader. Continue reading →
Teekay Tankers’ purchase of 12 suezmaxes, a win-win deal By Barry Parker from New York The fate of Principal Maritime, a tanker company backed by private equity (PE) powerhouse Apollo Management, was revealed last week, with the announcement of the … Continue reading →
PBF Energy – has recently crafted an unorthodox trade: Delivering a 500,000 bbls Kearl Lake cargo (Albertan) to Philadelphia through Panama by LR2 tanker.
It is a move that you would normally expect from guys like Freepoint Commodities, (not PBF). Continue reading →
According to Goldman Sachs Asset Management. ETFs have a very transparent portfolio holding and predefined creation basket. This allows arbitrageurs to create and redeem units every day through the in-kind creation / redemption mechanism. Such arbitrageurs are always in the market to take advantage of any significant premium or discount between the ETF market price and its NAV by doing arbitrage between the ETF and its underlying portfolio. Thus, the open architecture of ETFs ensures that there is no significant premium or discount to NAV. At the same time, additional demand / supply is absorbed due to the action of the arbitrageurs. Continue reading →
[IN FEBRUARY 2015, ICEBERG RESEARCH ISSUED A REPORT ALLEGING, AMONG OTHER THINGS, THAT: (I) NOBLE GROUP EXPLOITS THE ACCOUNTING TREATMENT OF ITS ASSOCIATES TO AVOID LARGE IMPAIRMENTS AND FABRICATE PROFIT; AND (II) CONTRARY TO WHAT NOBLE GROUP’S MANAGEMENT CLAIMS, THE … Continue reading →
In trading, there is a time lag between the shipment of products by an exporter and their arrival by the importer depending on the duration of a voyage. Normally, exporters will require payment upon loading, whilst importers ideally would delay payment until arrival. In its simplest form, trade finance is bridging this timing lag by providing a short-term credit facility. This activity is intermediated by banks and also collateralized by the underlying cargoes as well as by additional export guarantees. Continue reading →
Shipping is not a boring activity, it has always attracted ultra-smart and passionate types. Martin Stopford is a Brit Economist and the Mastermind behind Clarksons Research, part of Clarksons group. He is a sophisticated and Smart type with formidable intellectuals. Continue reading →
Simplifying how oil traders make deals on various freight transactions terms.
Have you ever wondered about the meaning of commodity trading terms, or Incoterms? FOB…DES…DDP. Say What?!?
Incoterms were established by the International Chamber of Commerce (ICC), a non-governmental organization, to standardize the interpretation of major trade terms.
Sales contracts using Incoterms define the obligations and risks of both the seller and the buyer. The obligations cover the period while the merchandise is in transit, whether by land, sea, air or a combination of modes. Continue reading →
The shipping trade is nested by an ancillary web of commodity sale & purchase contracts crafted by traders to create “the ultimate trading optionality”actionable unto the smallest decision timeframe possible !
Disputes arise when the liabilities and risks of such trade innovations are not carefully apportioned in the S&P contracts. Moreover some organizations exert an operational veto on the commercial operations of others because of physical/logistical constraints and in some case because of their natural bottleneck monopoly. Continue reading →
Recently, a solid MISPRICING has appeared in the RIN market with D5 RIN (the RIN for advanced cellulosic ethanol have become expansive vs E100 and Gasoline( shortly after the EPA issued RFS and during pending changes for Brazil tariff on foreign imports). A major U.S IB has brought Brazil Ethanol to blend ethanol to generate the RIN, then separate it and cash-out the credit attached. Continue reading →