Foreword
By Olivia Campbell, Sales & Marketing Director

Wake-Up Call for Risk Management Professionals
Two of the most active hedge funds engaged in energy derivatives trading have recently been forced to liquidate their holdings after experiencing large losses in natural gas prices and volatility spread trades. Despite several warning signals pointing at their high 'blow-up' risk potential, the speed and magnitude of the losses caught many of the fund investors by surprise. Here, we outline a series of risk management lessons that could assist investors, as well as hedge fund managers, in avoiding future disasters.
By Carlos Blanco, Black Swan Risk Advisors.

The Long-Arm Reach of Regulators in the Energy Markets
Energy commodity trading is a globalised business, with high risks and rewards. One of the main attendant risks is that, in an increasingly borderless world, trading operations need to have an evolving and fluid insight into how the major regulators understand the concept of 'jurisdiction' - in many ways, this forms the key to managing and avoiding regulatory risk.
By Doron Ezickson, Kate Learoyd & Prajakt Samant, McDermott Will & Emery

Banker's Taste for Cocoa
After the successful signing of COCOBOD's (Ghana Cocoa Board's) trade-backed loan facility to support the year's cocoa crop, François Monnier, Head of Soft Commodities in the natural resources and related industries department at investments and projects bank Natixis, talks to Commodities Now about the continuing appeal of one of Africa's longest running annual trade financings.

WEO 2006 Maps Cleaner, Cleverer, Competitive Energy Future
"World political leaders have decided to act with resolution and urgency to change the energy future. The World Energy Outlook 2006 shows how to make that happen", says Claude Mandil, Executive Director of the International Energy Agency (IEA) launching the latest edition of the Outlook - the annual flagship publication of the IEA.

Non-Ferrous Exploration Budgets Reach New US$ 7.5 bn High
Metals Economics Group's (MEG) analysis of 2006 worldwide exploration budgets shows an increase to US$7.5 billion this year - the fourth consecutive yearly increase since the bottom of the cycle in 2002 and the highest total since the study series began in 1989.

The Safari Summit
The UN's great big carbon jamboree has just come to an end. Held in Nairobi's lesser rainy season, delegates' fun was marred only by the need to hop from one dry patch to another, trying to avoid the ankle-deep red mud.
By Candida Jones, Point Carbon.

Kazakhstan: Natural Resource Developments
From a commodities perspective, the Republic of Kazakhstan is one of the world's leading possessors of major deposits of minerals with vast quantities of base and precious metals being extracted. It has countless others waiting for prospecting and development, including large deposits of ferrous and non-ferrous minerals and a wide variety of other commodities including coal, iron ore, ferro-alloys, alumina, copper, lead, zinc, steel, titanium sponge and uranium.
By Rhod Mackenzie, Rusmininfo.

Triple Point's 'Visual Cockpit' Optimizes Natural Gas Scheduling
Trades and Schedules Seamlessly Integrated for Real-Time, Accurate Decision Making

Aluminium: Prices to Slip - Support at US$2,00
Most base metals prices have been racing higher since the last quarter of 2003. These prices appear to some to be a balloon that is ready to 'pop'. Where does aluminium fit into this picture?
By Catherine Virga, CPM Group.

The Impact of Commodity Electronification on Buy-Side Alpha Generation
The rapid 'electronification' of investment markets is broadening trading opportunities. As buy-side traders embrace a multi-asset approach, more funds have been moving into commodities. Screen-based trading of energies and grains is regularly setting monthly exchange volume records, in part because of increased buy-side participation. Many of these companies are seeking the volatility in these vibrant markets to generate alpha - excess returns attributable to a manager. This paper explores the appeal of these products and will look at some of the innovative technologies that are helping buy-side traders leverage these attractive and growing markets.
By Ron Villarin, Trading Technologies.

Chinese Expansion to Create New Global Mining Companies
Damian Brett & Magnus Ericsson of the Raw Materials Group look at the phenomenon that is China and its growing influence in extractive industries. The focus here is on mineral and metals markets.

Aluminium's New No.1
As the creation of the world's largest aluminium producer draws closer, Commodities Now asked Rusal's CFO, Vladislav Soloviev, to give us an insight into the imminent merger and some colour from the Rusal perspective.