Middle Eastern Promise
The fact that around 20% of the world's high rise cranes can currently be found hard at work in Dubai provides some indication of the scale of the construction boom in the Middle East. There is US$45 billion worth of ongoing real estate projects in Dubai and it is estimated that the value of infrastructure projects in the pipeline across the Middle East is over US$1 trillion. Clearly, there is huge demand for materials in the industrial sector, particularly for a versatile commodity such as aluminium.
By Ian Cogswell, Commodities Now, June 2007.

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, Commodities Now, December 2006.

Walking the Line - New Frontiers in Risk Management: Reputational
Risk & Crisis Management
It usually takes years to build solid reputations. Conversely, they can be lost in a very short period of time - sometimes overnight - as the recent debacles of Refco, China Aviation Oil (Singapore) and Enron clearly illustrate. When firms lose their reputations, they usually face the classic 'run on the bank' problem as customers, creditors and employees rush to exit their relationships with the firm.
By Carlos Blanco & Brian Regan, Commodities Now, September 2006.

Commodities Zenith: Too Far, Too Soon ...?
Investment funds have 'troughed' on commodity markets in the last two years. Many more are entering the sector (or rumoured to be), even in the knowledge that prices have rocketed to perhaps beyond reasonable levels. So have investors 'pigged out' on commodities?
By Guy Isherwood, Editor, Commodities Now, June 2006.

The Revenge of Gaia
Mankind has gone so far in its neglect of Mother Earth that only drastic and immediate action can save us as she seeks her revenge. Talk of sustainable development, renewables and other concepts like the 'hydrogen economy' are, frankly, fanciful, according to James Lovelock's The Revenge of Gaia.
Book Review By Guy Isherwood, Editor, Commodities Now, March 2006.

Managing Commodity Price Uncertainty
Fundamental principles of economics can help explain the problems facing companies in many industries where commodity prices have risen to new levels and exhibited tremendous volatility. Over the last few years, rising global demand, production shortages and delivery constraints have led to price increases across a wide variety of commodities. While the price characteristics of crude oil and other key energy commodities have received the greatest attention, this overall trend has affected a large number of diverse commodity groups, including livestock, crops, food and fibre, precious and base metals.
By Charles Tooman & Gary Germeroth, PA Consulting Group, Commodities Now, December 2005.

Portrait of the Market as a Young Man
The EU carbon market has burst into life since the emissions trading scheme formally began on January 1st this year. In its first six months the market has changed beyond recognition, gaining liquidity and confounding expectations of volatility. What is now required is greater depth.
By Andreas Arvanitakis, Point Carbon, Commodities Now, September 2005.

Airlines Hedging Strategies: The Shareholder Value Perspective
Airlines, particularly those in the United States, continue to suffer from high jet fuel prices. Hedging is often touted as the solution to this problem, but can be a double-edged sword for those who are not clear about why they are doing it.
By Carlos Blanco, John Lehman & Naoki Shimoda, Commodities Now, June 2005.

LME Plastics Ready to Launch on May 27th
The detractors are slowly being won over. They should see the LME initiative not as a cost to the industry, but an opportunity to move to a more sophisticated model for risk control and transfer. To whatever extent the plastics market will embrace plastics contracts is obviously a 'wait and see' question. Equally, the LME will measure the success of its initial plastics offerings before considering additional resins and grades. At the end of the day, the market will decide the usefulness of a plastics futures trading proposition.
By Guy Isherwood, Commodities Now, March 2005.

Life on Hedge Row
At what point in the great investment cycle did you realise that the 'Internet Bubble' was a reality and it was time to cash in on the millions of dollars that you had made in the NASDAQ stock market? Similarly at what point did you realise that interest rates were going to head south and settle at pre World War II rates for almost a year? And at what point did you realise that hedge fund investments probably made sense but only for the long haul?
By Cai Palmer, Managing Director, Court Cavendish Consultancy, Commodities Now, September 2004.

The European Emissions Trading System
The Kyoto Protocol (KP) is close to entering into force. Governments in the Annex-1 nations (the countries with caps on GHG emissions under Kyoto) are all developing strategies in order to meet the Kyoto targets in the first Commitment Period (2008-12). One of the most significant measures being put into place to manage national GHG emissions will be through the recently agreed EU Emissions Trading System (EU ETS) - a mechanism that will regulate some 46% of the EU's CO2 emissions.
By Justin Guest, Ecosecurities, Commodities Now, September 2003.

Commodity Currencies
Developing countries reliant on commodity exports see the fate of their exchange rates tied to fickle commodity markets.
By Paul Cashin, Luis Céspedes, & Ratna Sahay, Commodities Now, June 2003.

Managing the Whims of Nature
“Some people are weather wise, some are otherwise.” (Benjamin Franklin, 1706 – 1790)
By Michael Corbally, Commodities Now, June 2003.

The Fog of War
When analysing geo-political risks, it is tempting to use analogous situations thrown up by history and geography. Although it is natural to start with the Gulf War of 1991, it is of at least equal importance to keep in mind the differences between then and now, as the two situations could imply very different economic and market consequences, even if the military outcome is similar. Below, Barclays Capital discuss how various markets - oil, bonds, equities, currencies and commodities - reacted before, during and after the 1991 Gulf War.
By Henry Willmore, Brad Stone & Gemma Wright, Commodities Now, March 2003.

VAT & Indirect Taxes in Energy Trading: New Hope for Solving the Trading Tax Barrier
By Rogier Vanhorick, WorldPower, 2003.

Could Trading Commodities be Bad for Your Health?
For anyone who has not been following the debate on European commodities regulation and, in time honoured commodities fashion, regards regulation as something that other markets have to worry about, praying is the suggested course of action. Clive Furness suggests you pray that someone else will do something about the potentially business-threatening regulations that are being proposed by the European Union.
By Clive Furness, Commodities Now, September 2002.