Ethanol Blending Economics: Higher RIN prices support blending despite lower gasoline prices.

Higher RIN prices support blending despite lower gasoline prices. With the exception of two short periods in late 2013 and the first quarter of 2014, when winter-related logistical bottlenecks drove up ethanol prices, spot ethanol prices have consistently been lower … Continue reading

Agriculture: the Acreage Switch Play and the Soybean-to-Corn Price Ratio.

A good crop always starts from the soil. Agronomists and Crop Specialists are busy with soil sampling this spring as many growers are asking to have more fields sampled because of a huge yield variance between fields in 2014. We … Continue reading

Evaluating Portfolios In Energy Trading Pt.1: The Endless Belt of Risks

In the past institutions could not sell complex risks to investors, now it’s not only the case, it’s a part of their daily business. CASE A: The German Bank and the Norwegian Shipowner: I) A German bank is an underwriter … Continue reading

Want the Juice ? Bespoke Merchant services for Grain Farmers.

Commodity  Merchant  Trading  &  Shipping  Advisory  Services,   the specialist in Price and SCM risks, provides cutting-edge Financial Planning Analysis (FP&A) advisory for Commodity and Transportation Investments, bespoke merchant services for top producers. Grain Farmers, want the Juice ? Stage … Continue reading

SAVIUS LLC, Proprietary Commodity Trading Boutique Part I.

SAVIUS LLC,  Proprietary Commodity Trading Boutique. Business Profile: Savius LLC Headquarters: Chicago, Il. Business Activity: Proprietary Trading Boutique Trading Manager: Pietro M. Terzano Studies: Business Administration at Université internationale de Monaco. Background: shipbroker at Bravo Tankers, derivatives broker at Bravo Futures (founder). … Continue reading

The Economics & Physical Aspects Behind The Contango.

Commodity Merchant Trading & Shipping Advisory Services   They are two approaches in commodity trading: Risk-Based (RBA) and Flow-Trading Analysis which help traders to evaluate the nature of a market before undertaking a position. Floating Storage is very much about … Continue reading

C3/C4 Hit the Bid, Marcus Hook owns the Atlantic Basin

  The Natural Gas Liquids (NGLs) market, given its unique structure, never ceases to amaze us. Its elastic demand determined by the price differences between various feedstocks and its supply chain are two crucial drivers to understand value in this market. … Continue reading

Mexican and Canadian Oil Flows as a Function of Commodity Price Benchmarking and Structured Commodity Finance

“Something’s going to have to give,” said Ed Morse, Citibank’s head of global commodities research in New York. “U.S. refineries built out their capacity to run heavy barrels,” Auers said. “Refineries in the rest of world aren’t built to run … Continue reading

Europe/U.S arbitrages: Christmas Gifts to roll into the new year ?

It’s the holiday season but the energy markets never stop.  Ultra-low Sulphur Diesel (ULSD) is trading in the U.S at a premium to values in the U.S Atlantic coast, amid weakness in the ICE high sulfur gasoil futures and below … Continue reading

Learning Spread Trading, is it worth it ?

  Lexicon:  ST=Spread trading FT=Futures Trading RM: Risk Management   In the world of the commodity futures markets, no subject generates more interest and questions than spread trading. A spread combines both a long and a short position put on at … Continue reading

Unbekannter Rohwaren-Riese Mercuria «Meine Familie ist seit 1407 in Genf»

Unbekannter Rohwaren-Riese Mercuria «Meine Familie ist seit 1407 in Genf» Interview: Gerald Hosp und Jean-Pierre Kapp 27.12.2013 Mercuria war 2004 von Marco Dunand (l.) und Daniel Jaeggi, zwei früheren Händlern von Goldman Sachs, gegründet worden. (Bild: Lionel Flusin) Mercuria ist … Continue reading

Commodity Firms Assessing a New Global Market Place in 2015, Traders – Secrets and Commodities Part IV

    Foreword by Simon Jacques Commodity trading might be defined as shifting the commodities from surplus regions to deficit regions or matching the production with a sale in a deferred time-frame – and hopefully making a profit in the process. Lately, … Continue reading

An Apple-to-Apple Basis Comparison, One Jones Act unit vs One Foreign Flag Vessel Unit. $/bbl What the Heritage Foundation got wrong about the Jones Act !

An Apple-to-Apple Basis Comparison: One Jones Act unit vs One Foreign Flag Vessel Unit. $/bbl What the Heritage Foundation got wrong about the Jones Act. The Merchant Marine Act of 1920 (P.L. 66-261), also known as the Jones Act1 (JA) requires all vessels shipping cargo … Continue reading

Bloomberg News: Canada Gas Project Delay Highlights Oil Plunge’s Wider Risk

Petronas Defers $32 Billion Canada LNG Project Decision on Costs Russia-China Gas Accord to Pressure LNG in Canada Canada Gas Project Delay Highlights Oil Plunge’s Wider Risk. Credit: Goh Seng Chong/Bloomberg End of Cycle “We are at the end of a … Continue reading

Come-by-Chance Comes back to Life with U.S Commodity Hedge Fund

 © 2015 Navigating the commodity markets with Freight and Spreads

Gas-to-Power projects, Structured Finance

Trying to catch the Falling Knife; not Commodity Risk Management

Trying to catch the Falling Knife; not Commodity Risk Management A knife is a slang  for a asset in which the current price or value has dropped significantly in a short period of time. [1] A falling knife asset can rebound, … Continue reading

Ethanol, a Misunderstood and Underused Green fuel.

Originally posted on Blue and Gold Merchants' Club:
The Trade, Shipping and Finance Wizard:Corn-ethanol is the world’s lowest cost liquid transportation fuel. China is importing U.S ethanol so are oil producing countries like UAE, Saudi Arabia. The Energy Complex sees Ethanol as favorable because it is cheap by … Continue reading

Lumber: arbitrage opportunities from a volatile basis.

Originally posted on Blue and Gold Merchants' Club:
Pendant la dernière décennie, le marché du bois fût très volatile. En effet, ce marché est très cyclique et étroitement lié au marché de la construction, au marché du logement (Housing Starts)…

Agriculture: Soybean is the Black Beast for Poultry Farming

Originally posted on Blue and Gold Merchants' Club:
The Trade, Shipping and Finance Wizard:Foreword by Simon Jacques Anyone wanting soybean meal found it in very short supply during October. The basis has soared in most regions during the crop season. The harvest was slow and not without logistical issues in … Continue reading

Precious Metals: China is the Heavyweight Gold Champion 千錘百煉

Originally posted on Blue and Gold Merchants' Club:
The Trade, Shipping and Finance Wizard:China is  the world’s top producer of gold (437 MT in 2013) They are the largest gold importer and consumer in the World. They imported a record 1,108 MT in 2013 and consume half of the … Continue reading

Le Sucre, un prix à la baisse malgré la baisse des récoltes ?

Le sucre est un produit agricole majeur échangé internationalement. L’accessibilité au  produit est relativement simple, il y a en effet plus de 100 pays capables de produire leur propre sucre. Aujourd’hui, la demande pour le sucre est très grande non … Continue reading

A knowledge based shipping industry. The Nor-Way; Insights from BI Norwegian Business School.

A knowledge based shipping industry. The Nor-Way; Insights from BI Norwegian Business School.

It is the combination of formal and tacit knowledge that produce excellent results in the shipping industry claims Professor Torger Reve, BI Norwegian Business School. TEMA: STRATEGY IN ACTION A knowledge based shipping industry Economist Torger Reve is a Professor at … Continue reading

How a new tax can attract Shipping ? CH to consolidate its status in the Global Commodity Trading Markets.

Amongst all Swiss cantons, Zug, Vaud and Geneva are  the most eager to hear the proposals from Berne to reform the corporate tax. This project responds to international pressure and will lead to the abolition of favorable tax status that Swiss … Continue reading

The NOR Way of doing business: Odfjell

The NOR Way of doing business: Odfjell. Tradewinds + (TW +) September is featuring Dan and Laurence Odfjell who are the fourth generation at the helm of the group.  Odfjell Tankers is a leading global provider of ocean transportation with … Continue reading

Tradewinds, Jacques and Los on “the Canadian Shipping Pipeline” to the U.S Gulf

  Genmar Daphne Steaming up the Houston Ship Channel with assistance from tugboats. The 106,000 tons DWT crude oil tanker owned by General Maritime. Credit: Roy Luck Cost Estimates:   Commodity $/bbl: ECC/Europe aframax  Montreal/Gdańsk, Poland Round-Voyage estimate $3/bbl². ECC/US: … Continue reading

The Snøhvit Play in the U.S North-East.

LNG Trading & Shipping: The Snøhvit Play in the U.S North-East. The Arctic Princess is owned by Höegh LNG and is chartered by Statoil, Amerada Hess, and RWE under a joint agreement. Its cargo intake is 145057 cbm. It’s origin: Snøhvit, Norway. (Statoil) Repsol has … Continue reading

Canada could beat Russia in its own backyard, a Synthetic Ural “made in Canada” for Europe

Canada could beat Russia in its own backyard, a Synthetic Ural “made in Canada” for Europe

Montreal, for Eastern-Canada, will become an outpost for oil trading just like Calgary or Houston in the U.S. The imposing Minerva Gloria. Source: Tradewinds With Enbridge, Rail and Trans-Canada = you create new volume which is great for traders. The St-Lawrence River … Continue reading

Greeks letters in Shipping, the role of the finance specialist for asset pricing Part II

The Role of the Finance Specialist for Shipping Asset Pricing Part II: Greeks letters in Shipping Greeks Θ Δ ϒ letters in Shipping To paraphrase the Greeks (but this time the Greeks in Finance), let’s take the MT Sirius Voyager  (156,500 DWT, 1994 built) … Continue reading

The role of the finance specialist for asset pricing in Shipping Part I

 The changing landscape in the wet freight trade is also remodelling the tanker fleet pricing. It is basically the role of the finance specialist to convert implied daily hires rates into asset prices considering the new expectations and new information elements printed by the … Continue reading

What is next for September ? Energy & Freighters

ENERGY_SKIER

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The best call that I have seen in the entire markets this year was from Commodore Research. The daily average rate to hire a Capesize, each able to carry about 160,000 metric tons of cargo, climbed 93 percent this month … Continue reading