Lamon Rutten

Tea producers and exporters are plagued by repeated cycles of price and revenue fluctuations, endangering the sustainability of a significant part of the industry. While futures contracts are not a panacea, they are effective, proven, low-cost solutions for dealing with price and revenue fluctuations. It thus makes sense for the tea industry to act as champion of tea futures contracts, and formulate action plans for each of the relevant tea market segments. This paper discusses opportunities… عرض المزيد

Tea producers and exporters are plagued by repeated cycles of price and revenue fluctuations, endangering the sustainability of a significant part of the industry. While futures contracts are not a panacea, they are effective, proven, low-cost solutions for dealing with price and revenue fluctuations. It thus makes sense for the tea industry to act as champion of tea futures contracts, and formulate action plans for each of the relevant tea market segments. This paper discusses opportunities and possible steps forward in this regard. عرض أقل

This brief paper explores the opportunities for African banks in financing intra-African food trade, in particular using value chain financing mechanisms (also called structured financing techniques). Value chain financing is used widely in the continent’s agricultural trade, but mostly for exports to and imports from other parts of the world, not for intra-African trade. And most such value chain financing transactions are managed by international banks, with African banks having at best a… عرض المزيد

This brief paper explores the opportunities for African banks in financing intra-African food trade, in particular using value chain financing mechanisms (also called structured financing techniques). Value chain financing is used widely in the continent’s agricultural trade, but mostly for exports to and imports from other parts of the world, not for intra-African trade. And most such value chain financing transactions are managed by international banks, with African banks having at best a supporting role. For African farmers to be able to supply urban consumers in their own and neighbouring countries with the quantity and quality of food that they will increasingly demand, well-organised value chains need to
be created – as well organised as the current value chains from African farmers to consumers in developed countries. Many of the elements for this are falling in place, for example the growth of supermarkets in Africa and at least vocal support of the region’s governments to improve the conditions for regional trade. Lack of access to finance can, however, frustrate the efforts of the private sector to build viable value chains. This, in turn, provides interesting opportunities for African banks. This paper discusses in some detail where the opportunities lie and what needs to be done to realize them, in particular through the use of value chain financing techniques. عرض أقل

This chapter describes practical and evidence-based financial inclusion models to strengthen African youth participation in agricultural value chains. It starts with a brief review of the challenges preventing young agripreneurs (i.e., entrepreneurs in the agri-value chains) from accessing needed finance. Next, the conditions and specific challenges that prevent access to financial services for young agripreneurs and young subsistence farmers are discussed. This is followed by a description of… عرض المزيد

This chapter describes practical and evidence-based financial inclusion models to strengthen African youth participation in agricultural value chains. It starts with a brief review of the challenges preventing young agripreneurs (i.e., entrepreneurs in the agri-value chains) from accessing needed finance. Next, the conditions and specific challenges that prevent access to financial services for young agripreneurs and young subsistence farmers are discussed. This is followed by a description of the role of governments in creating an enabling environment for financial inclusion of youth in agriculture, and in developing innovative financing mechanisms. Then, key principles that financial service providers should follow while developing products and services targeting youth are described and four key innovative financial products for youth are presented. Finally, the conclusion highlights key policy recommendations for enhancing access of African youth to innovative and inclusive agri-finance. عرض أقل

The paper concludes that a commodity exchange, building on the existing technology of the Royal Bhutan Stock Exchange, is useful and feasible for the country, addressing both the marketing and financing constraints that plague farmers. The paper notes that through a network of warehouses (starting with the warehouses operated by the state food board), the commodity market platform will effectively link farmers/growers to modern output and finance markets. Farmers/growers can bring their… عرض المزيد

The paper concludes that a commodity exchange, building on the existing technology of the Royal Bhutan Stock Exchange, is useful and feasible for the country, addressing both the marketing and financing constraints that plague farmers. The paper notes that through a network of warehouses (starting with the warehouses operated by the state food board), the commodity market platform will effectively link farmers/growers to modern output and finance markets. Farmers/growers can bring their produce to a nearby exchange-approved warehouse where electronic warehouse receipts will be generated representing their produce. They can then put up the receipt for sale through an electronic network; and/or they can use it as collateral for bank loans, which will be distributed by the warehouse operator as agent for a bank. عرض أقل

In the course of just a few years, Cambodia has become a large surplus producer of rice. But while there has been much investment in new rice milling facilities, there has been no improvement in the availability of working capital finance for the rice sector. As a result, much of Cambodia's production is exported in the form of paddy to neighboring Viet Nam and Thailand. Buyers from these countries have the cash that the local rice millers lack. Because they are short of working capital the… عرض المزيد

In the course of just a few years, Cambodia has become a large surplus producer of rice. But while there has been much investment in new rice milling facilities, there has been no improvement in the availability of working capital finance for the rice sector. As a result, much of Cambodia's production is exported in the form of paddy to neighboring Viet Nam and Thailand. Buyers from these countries have the cash that the local rice millers lack. Because they are short of working capital the mills cannot procure sufficient paddy to fully use their capacity - in fact, several modern mills have been idle since construction. This report sets out in detail how warehouse receipt finance can change this situation, and what needs to be done by the rice sector, banks and the government to put a full-fledged warehouse receipt financing scheme in place. عرض أقل

This book discusses the techniques and applications of structured commodity finance within the range of financing alternatives available to the commodity sector. It will help you to understand the process of structured commodity finance and be able to apply it successfully to your next financing challenge. It is probably the most comprehensive book on SCF, both in terms of the techniques described and in terms of the number of case studies presented. The book uses dozens of case studies… عرض المزيد

This book discusses the techniques and applications of structured commodity finance within the range of financing alternatives available to the commodity sector. It will help you to understand the process of structured commodity finance and be able to apply it successfully to your next financing challenge. It is probably the most comprehensive book on SCF, both in terms of the techniques described and in terms of the number of case studies presented. The book uses dozens of case studies, illustrating the applications of the SCF techniques to meet the financing needs of all its potential constituents worldwide: for soft and hard commodities; trade or new investments; from SMEs to large multinational companies; trading companies as well as producers or processing companies, and so on. عرض أقل

This manual describes how structured trading systems work for grains such as maize, sorghum and millet, as well as commodities such as groundnuts and soybeans. The manual explains how the system works, from postharvest handling and warehousing to trading on a commodity exchange. It describes standards, explains how market information is used, and explores the details of trade contracts and dispute resolution. It has been and can be used successfully in training programmes and courses.

Africa is the world’s current frontier for commodity exchange development, attracting the interest of domestic investors as well as some large international commodity exchange groups. This 92-page guide discusses the issues involved and the important decisions that need to be made. First, an overview of the history of commodity exchange development in Africa is given, and the range of ambitions that the current and past initiatives have had. Then, the significant potential benefits of… عرض المزيد

Africa is the world’s current frontier for commodity exchange development, attracting the interest of domestic investors as well as some large international commodity exchange groups. This 92-page guide discusses the issues involved and the important decisions that need to be made. First, an overview of the history of commodity exchange development in Africa is given, and the range of ambitions that the current and past initiatives have had. Then, the significant potential benefits of exchanges for African economies are discussed, including as concerns intra-African trade. Conditions and constraints for African exchange development are explored, and potential moves ahead analyzed – in particular, does it make sense for African countries to introduce national platforms or should they consider linking national initiatives to regional platforms? The necessary regulatory framework is then described. The concluding section sets out key policy choices, makes recommendations on how to mitigate constraints, and sets out the potential roles of international development partners. An annex contains an overview of the various exchange initiatives that Africa has seen (in 28 different countries!) over the past two decades. عرض أقل

Analyzes how various financing approaches and instruments have been used in transition economies to bring loans to the agri-value chain. Contains extensive annexes on innovative instruments worldwide, e.g., Brazil's capital market-based funding tools for agriculture, funding mechanisms offered by Colombia's commodity exchange, and agricultural lending by micro-finance organizations.

The study starts with an overview of the commodity exchanges in the ECA region, including their key features, strengths and weaknesses. It then discusses in detail exchange initiatives in Kazakhstan, the Russian Federation, Turkey and Ukraine. The difficulties in developing exchanges, including in the light of the common misconceptions held by policy-makers and industry stakeholders, are analyzed, and core features of an enabling legal and regulatory environment highlighted. Finally, the… عرض المزيد

The study starts with an overview of the commodity exchanges in the ECA region, including their key features, strengths and weaknesses. It then discusses in detail exchange initiatives in Kazakhstan, the Russian Federation, Turkey and Ukraine. The difficulties in developing exchanges, including in the light of the common misconceptions held by policy-makers and industry stakeholders, are analyzed, and core features of an enabling legal and regulatory environment highlighted. Finally, the potential for introducing new or upgrading existing exchanges in the ECA region is assessed; and potential support by the international community identified.
عرض أقل

Governments in East Africa have tended to intervene heavily in markets for their key food staple, maize, both through marketing board operations and discretionary trade policy instruments, purportedly to protect producers and consumers from price risk. In effect, such interventions can be counter-productive, exacerbating the risks faced by participants in the grain value chain, not to mention consumers – especially the poorest amongst them. This paper explores the impact of intervention… عرض المزيد

Governments in East Africa have tended to intervene heavily in markets for their key food staple, maize, both through marketing board operations and discretionary trade policy instruments, purportedly to protect producers and consumers from price risk. In effect, such interventions can be counter-productive, exacerbating the risks faced by participants in the grain value chain, not to mention consumers – especially the poorest amongst them. This paper explores the impact of intervention policies on maize markets in three countries: Kenya, Tanzania and Uganda. It also examines alternative approaches to mitigating risks for maize producers and consumers in the region. عرض أقل

This paper discusses the state of warehouse receipt finance in countries of Eastern Europe and Central Asia (ECA), and possibilities for enhancing its use. It describes legal and regulatory issues that need to be resolved, and how the international community can help in the process.

Chapter in a book edited by Madhoo Pavaskar, "Effects of Futures Markets on Agricultural Commodities"

Describes the risks and constraints in financing horticultural trade in Africa; explains the role of
various parties, ranging from Governments, banks, producers, exporters, buyers, auction
floors, and insurance companies in ensuring successful horticultural export financing structures; and details a number of successful horticultural financing deals.

Producers and many others in much of the developing world are exposed to highly volatile commodity revenues. A range of methods have been tried to either reduce this exposure (for example, through compensatory schemes and production/export controls) or to better manage it (e.g., through stabilization funds or market-based risk management mechanisms). This paper takes the case of one commodity—coffee—and looks at how market-based risk management can be used to improve coffee growers’ lives.

Chapter of a book edited by J. Morrisson and A. Sarris. This chapter seeks to understand the role of state-supported trading enterprises (STEs) in developing countries. Section 2 of the chapter provides an overview of the major agricultural STEs in developing countries, discussing their current status, economic and regulatory functions, and exclusive controls. The relevance of the economies' food security position and the size of domestic markets is discussed, as are commodity-specific drivers… عرض المزيد

Chapter of a book edited by J. Morrisson and A. Sarris. This chapter seeks to understand the role of state-supported trading enterprises (STEs) in developing countries. Section 2 of the chapter provides an overview of the major agricultural STEs in developing countries, discussing their current status, economic and regulatory functions, and exclusive controls. The relevance of the economies' food security position and the size of domestic markets is discussed, as are commodity-specific drivers of these STEs' functioning. Based on this discussion, section 3 explores the options that are before policy makers. To provide a better perspective, the experiences of some of the STEs in developed countries are described. The concluding section stresses the need for a phased transition, with market-based alternatives to the STEs' critical functions developed alongside any programme of reform of STEs. عرض أقل

This report explores the link between the new Basel Capital Accord and commodity finance for developing countries. It explains the basic principles of Basel 2, and how various mechanisms have been built in to the Accord which can, in principle, help developing countries to mitigate or overcome any a priori negative effects. It then explores mechanisms such as structured finance and collateral management which can isolate certain transaction s from high provisioning requirements, highlights the… عرض المزيد

This report explores the link between the new Basel Capital Accord and commodity finance for developing countries. It explains the basic principles of Basel 2, and how various mechanisms have been built in to the Accord which can, in principle, help developing countries to mitigate or overcome any a priori negative effects. It then explores mechanisms such as structured finance and collateral management which can isolate certain transaction s from high provisioning requirements, highlights the critical steps that developing countries and their banks can take, and discusses what international banks and the international community can do to protect commodity finance flows to developing countries. عرض أقل

Argues that African governments should place part of their surplus oil revenue with professionally-managed investment funds, which focus on investing in the infrastructure and services critical for Africa's growth and competitiveness. As such investments enhance productive capacity there is little risk of Dutch disease; and returns from such investments are likely to be much higher than those of passive investments in western capital markets.

This paper focuses on the most recent forms of future flow finance, which are structured on the back of two commoditized revenue streams that have only been identified over the past ten years as providing the potential for underpinning hard currency credits: migrant remittances and trade payment flows. It gives an insight on how to structure such transactions, and highlights the opportunities that exist.

Since the 1980s, new financing techniques that are collectively known as “structured project and trade finance” have become increasingly prevalent in financing transactions involving developing countries. Many of the risk mitigation tools they use have strong similarities with various structures that have evolved in Islamic finance. Banks (or trading companies) that are able to propose Islamic finance to their clients can gain a competitive edge; and those that are able to tap into Islamic… عرض المزيد

Since the 1980s, new financing techniques that are collectively known as “structured project and trade finance” have become increasingly prevalent in financing transactions involving developing countries. Many of the risk mitigation tools they use have strong similarities with various structures that have evolved in Islamic finance. Banks (or trading companies) that are able to propose Islamic finance to their clients can gain a competitive edge; and those that are able to tap into Islamic financing markets can obtain relatively low-cost capital. At the same time, banks involved in Islamic finance can learn from the structures and techniques developed by their structured finance peers and adapt them for their own purposes. This paper explains what is involved. عرض أقل

Private sector financiers are often wary of funding renewable energy projects – a sector with which they are often not very familiar and which carries certain risks. Governments and aid donors support the expansion of the sector, but often have difficulty finding sustainable models. Structured finance techniques, which are widely used by financiers in the commodity sector to mitigate a series of risks, can help to reduce the “funding gap” for renewable energy projects, and can help… عرض المزيد

Private sector financiers are often wary of funding renewable energy projects – a sector with which they are often not very familiar and which carries certain risks. Governments and aid donors support the expansion of the sector, but often have difficulty finding sustainable models. Structured finance techniques, which are widely used by financiers in the commodity sector to mitigate a series of risks, can help to reduce the “funding gap” for renewable energy projects, and can help Governments and aid agencies to improve the leverage that they achieve with their financial support. This report discusses the main relevant structured finance techniques and how they can be used for boosting renewable energy investments. Several case studies illustrate how this can lead to successful projects. عرض أقل

Agreed conclusions of the AU Conference of Ministers of Trade on Commodities, including detailed recommendations on commodity finance and coping with stocks, and commodity exchanges.

Finding ways to strengthen South-South financing can be a win-win game, reducing the costs of trade, enhancing South-South investments, and bringing attractive returns to those providing the finance (particularly compared to the returns they can make on western capital markets). In this regard, there is a range of options. The creation of a new, dedicated financing institution is just one of these. One can also consider new institutional arrangements such as strengthened cooperation among… عرض المزيد

Finding ways to strengthen South-South financing can be a win-win game, reducing the costs of trade, enhancing South-South investments, and bringing attractive returns to those providing the finance (particularly compared to the returns they can make on western capital markets). In this regard, there is a range of options. The creation of a new, dedicated financing institution is just one of these. One can also consider new institutional arrangements such as strengthened cooperation among developing country Export-Import Banks and Development Finance Institutions, strengthened trade finance support organizations, and the creation of new financial capacity by setting up investment funds earmarked for South-South trade and investments. عرض أقل

Ukraine can benefit from having an agricultural futures exchange. It has a sufficiently large agricultural base to allow its successful operation, and a wide support for its creation. Overall, the conditions (described in detail in the report) are propitious. However, more than five years of efforts have not brought much progress on the road to the establishment of an exchange. Indeed, there are mostly isolated ideas and concepts: no one has a clear action plan indicating how to move… عرض المزيد

Ukraine can benefit from having an agricultural futures exchange. It has a sufficiently large agricultural base to allow its successful operation, and a wide support for its creation. Overall, the conditions (described in detail in the report) are propitious. However, more than five years of efforts have not brought much progress on the road to the establishment of an exchange. Indeed, there are mostly isolated ideas and concepts: no one has a clear action plan indicating how to move forward. And none of the current initiatives is sufficiently broad-based to ensure success. This report suggests how to re-engineer the process and establish a successful and broadly supported exchange. عرض أقل

A country-by-country survey of commodity exchanges, their activities and volumes.

The Abuja Treaty of 1991 held the creation of an African Commodity Exchange as a core instrument of the continent’s economic integration agenda. While several challenges have delayed progress, the report argues that developments in communications technology and exchange software packages would now enable its establishment. The report also states that choosing a working model is a private sector responsibility, but there are significant opportunities for public-private partnerships. Finally, it… عرض المزيد

The Abuja Treaty of 1991 held the creation of an African Commodity Exchange as a core instrument of the continent’s economic integration agenda. While several challenges have delayed progress, the report argues that developments in communications technology and exchange software packages would now enable its establishment. The report also states that choosing a working model is a private sector responsibility, but there are significant opportunities for public-private partnerships. Finally, it suggests that there is now sufficient interest in the private sector to develop an African commodity exchange, and by adopting a positive role Africa’s governments have an unprecedented opportunity عرض أقل

Agricultural credit schemes became prominent in government and donor development programmes in the 1950s, but they proved to be almost universal failures, and agricultural finance fell out of fashion. Recent years have seen a number of new experiments in agricultural finance. In one way or another, traditional approaches were all based on taking a credit risk with regard to the borrower. New approaches are based on taking not a credit risk but a performance risk. As long as borrowers continue… عرض المزيد

Agricultural credit schemes became prominent in government and donor development programmes in the 1950s, but they proved to be almost universal failures, and agricultural finance fell out of fashion. Recent years have seen a number of new experiments in agricultural finance. In one way or another, traditional approaches were all based on taking a credit risk with regard to the borrower. New approaches are based on taking not a credit risk but a performance risk. As long as borrowers continue performing as usual in the agricultural supply chain, banks are reimbursed. The risk that borrowers will cease to perform is mitigated through a range of relatively new risk management tools. These experiments have shown that, with proper organization, considerable funds can be attracted to and used productively in developing country agriculture. Nevertheless, governments and donors have largely kept their old mindset and continue ignoring agricultural finance. This paper discusses the issues involved, the new financing approaches developed in recent years, and possible ways forward in bringing agricultural finance back to the center of rural development and poverty alleviation strategies. عرض أقل

An analysis of tropical plywood production and trade, market structures and risk exposure; and suggestions on how to improve market infrastructure, inter alia by the introduction of a tropical plywood futures contract.

A chapter in ESCAP's Trade Finance Infrastructure Development Handbook for Economies in Transition.

Financial instruments such as documentary credit, structured finance and derivatives have proved
their value in commodity trade. However, the sophistication of these instruments can also make
them a tool for financial fraud. This report discusses how, using commodity market instruments
such as letters of credit, warehouse receipts, Special Purpose Vehicles, futures and swaps, the
sophisticated financial fraudster may try to trick bankers, commercial counterparties… عرض المزيد

Financial instruments such as documentary credit, structured finance and derivatives have proved
their value in commodity trade. However, the sophistication of these instruments can also make
them a tool for financial fraud. This report discusses how, using commodity market instruments
such as letters of credit, warehouse receipts, Special Purpose Vehicles, futures and swaps, the
sophisticated financial fraudster may try to trick bankers, commercial counterparties, Government
regulatory or tax offices, and shareholders. Various techniques that have been used in the past are
described, and illustrated with case studies (e.g. the salad oil swindle, Solo Industries and Enron). عرض أقل

Discusses the financing constraints in international food trade, and in particular, the difficulty banks have in increasing import credit lines in response to rising food prices. Recommends the creation of a market-based fund for the ex-ante management of the resulting risks for food-importing country, with extra financing, at market-based rates, becoming available when food prices rise above certain levels.

This paper starts with an overview of the current literature on the cost of price risk exposure to developing country farmers. It then discusses market-based price risk management instruments (such as futures and options) that can be used by farmers, as well as various mechanisms through which farmers' associations can facilitate farmers' access to price risk management tools as well as lower-cost financing (using warehouse receipt finance, repos and other structured financings). The… عرض المزيد

This paper starts with an overview of the current literature on the cost of price risk exposure to developing country farmers. It then discusses market-based price risk management instruments (such as futures and options) that can be used by farmers, as well as various mechanisms through which farmers' associations can facilitate farmers' access to price risk management tools as well as lower-cost financing (using warehouse receipt finance, repos and other structured financings). The experiences with use of such modern financial tools by farmers in several developing countries (Brazil, Colombia, Guatemala, India, Malaysia, Mexico, Philippines, Uganda) are described. The report concludes with a discussion of the practicalities of farmers' associations starting to use such financial instruments, including the potential of new technologies such as smart cards. عرض أقل

This paper discusses of a number of innovative financial techniques that can be used by developing country banks to open up new financing possibilities in the commodities sector, for industries servicing the commodity sector, and for financing on the basis of "commoditized" income streams. This includes techniques such as factoring and forfaiting, countertrade, warehouse receipt finance, prepayments, export receivables finance, Islamic finance, structured import finance, and securitization. A… عرض المزيد

This paper discusses of a number of innovative financial techniques that can be used by developing country banks to open up new financing possibilities in the commodities sector, for industries servicing the commodity sector, and for financing on the basis of "commoditized" income streams. This includes techniques such as factoring and forfaiting, countertrade, warehouse receipt finance, prepayments, export receivables finance, Islamic finance, structured import finance, and securitization. A number of practical models for developing country banks are described. عرض أقل

Assessment of the exposure of the Mongolian economy and of its government (through tax revenue) to copper price volatility, and a proposal, based on average price options, on how concretely to move forward with a programme to manage this risk. A similar approach with respect to gold price exposure was also suggested.

This brief paper discusses the potential for using new financial instruments for two purposes:
improving intra-African oil trade; and improving the management of the financial flows that come
with oil imports and exports.

One of the two chapters (the other one was on Islamic trade finance) that I contributed to ICEX's book "Financiacion estructurada de operaciones del comercio exterior"

This paper contains the conclusions and recommendations of a group of experts on structured
commodity finance. The experts discussed how structured commodity finance, in particular in
the agricultural sector, could contribute to development and help to alleviate poverty, which
policies and practices hindered the use of such finance and what measures could enhance that
use.
The experts agreed that while structured commodity finance was not a panacea, it could unlock
much of the… عرض المزيد

This paper contains the conclusions and recommendations of a group of experts on structured
commodity finance. The experts discussed how structured commodity finance, in particular in
the agricultural sector, could contribute to development and help to alleviate poverty, which
policies and practices hindered the use of such finance and what measures could enhance that
use.
The experts agreed that while structured commodity finance was not a panacea, it could unlock
much of the growth potential of commodity production and processing, while enabling the less
powerful links in the marketing chain (farmers and small traders) to improve their bargaining
power, and developing countries to compete in a global market place. The experts noted the
major obstacles to the use of structured commodity financing techniques, and identified
measures and actions that could be taken by the private sector, Governments and the
international community to overcome such obstacles. عرض أقل

This paper describes key developments (demographic changes, technological progress, changing domestic and international market structures, and the changing nature of consumer demand) which are affecting commodity markets, and discusses what these developments imply for the process of commodity price formation and the benefits that developing countries can draw from their commodity sectors.

The report gives a detailed overview of the different commodity risk management markets around the world, and the variety of instruments that are offered in these markets to reduce price risks.

This paper explores the potential for futures contracts in tropical (hardwood) plywood, one of the few major internationally traded commodities for which there is no yet a futures market. Commodity characteristics and market structures and practices that have an impact on the feasibility of a futures market are examined in detail, and conclusions drawn as to the way forward if one wishes to create such a market.

This paper describes the experiences of developing country enterprises, farmers and governments with commodity price risk management and various forms of structured finance. It explores the constraints that these entities face in using modern financial markets, including counterparty and sovereign risk obstacles, and problems in their legal and regulatory framework. Various schemes to overcome such obstacles are examined.

This paper collects and systematizes various pieces of UNCTAD’s work related to government actions which affect the ability of producers, traders, exporters, importers and the
Government itself to use risk management markets and to enhance their access to much needed finance.

This paper describes the key elements that determine the likelihood of success for a commodity exchange initiative: strategic choices (e.g., which types of contracts would work best, on what type of users to focus); ways of organizing exchanges (ownership structure, clearing operations, financial planning); (self-)regulatory issues; and the practical elements of exchange and contract development (from the physical layout of the exchange to the formulation of contract delivery specifications and… عرض المزيد

This paper describes the key elements that determine the likelihood of success for a commodity exchange initiative: strategic choices (e.g., which types of contracts would work best, on what type of users to focus); ways of organizing exchanges (ownership structure, clearing operations, financial planning); (self-)regulatory issues; and the practical elements of exchange and contract development (from the physical layout of the exchange to the formulation of contract delivery specifications and the timing of contract launches). عرض أقل

An extensive guide to price risk management in the fuels sector, covering both exchange-traded products and the over-the-counter market. Described as "one of the best publications on derivatives" in the Petroleum Argus.

A 140-page manual on price risk management, covering both exchange-traded products and the over-the-counter market.

This report discusses the use of commodities as collateral for trade financing for producers, processors, importers and exporters, the obstacles to such use, and ways these obstacles can be overcome. It categorizes the different types of collateralized financing available, and analyzes the various forms, including commodity-backed securities. Warehouse receipts are discussed in detail, particularly focusing on the conditions that may make a commodity "good" collateral for lenders, and the… عرض المزيد

This report discusses the use of commodities as collateral for trade financing for producers, processors, importers and exporters, the obstacles to such use, and ways these obstacles can be overcome. It categorizes the different types of collateralized financing available, and analyzes the various forms, including commodity-backed securities. Warehouse receipts are discussed in detail, particularly focusing on the conditions that may make a commodity "good" collateral for lenders, and the influence of warehouse location and characteristics on the value, for collateral purposes, of the commodities stored. Possible ways to enhance access to collateralized commodity finance for actors in developing countries and countries in transition are suggested.
عرض أقل

This paper explores the growing involvement of new types of non- commodity-sector-related players in commodity futures markets. This includes a discussion on the role of managed funds, the impact of the use of commodity warrants, and the direct involvement of banks. The impact of this new form of "speculation" on the price formation process on commodity futures markets is then examined, and conclusions are drawn as to the use of these markets by commodity sector actors.

The report discusses the generic roles which futures markets play in agricultural marketing; describes the current structure and operations of Indian futures markets; assesses the performance of Indian futures markets, identifying the factors which influence it; and examines the conditions and options for expanding and improving the contribution of commodity futures to agricultural marketing. The potential for the internationalization of India's exchanges and the introduction of new contracts… عرض المزيد

The report discusses the generic roles which futures markets play in agricultural marketing; describes the current structure and operations of Indian futures markets; assesses the performance of Indian futures markets, identifying the factors which influence it; and examines the conditions and options for expanding and improving the contribution of commodity futures to agricultural marketing. The potential for the internationalization of India's exchanges and the introduction of new contracts is also explored. The report concludes that public policy, including exchange regulations, should focus on optimizing the contribution that futures markets can make to the national economy. The report had a major impact on India's government policies, eventually leading to new regulations that permitted the successful introduction of several highly successful commodity exchanges. عرض أقل

The report sets out to describe the pepper economy in general (including the integration of
the various markets; the economic functioning of the main players, as well as the risks to which they are exposed; and the potential economic benefits of enhanced access to futures contracts). The conditions for a futures contract are then examined in light of the characteristics of the pepper
economy, and conclusions are drawn as regards current bottlenecks and possible policy solutions.

This paper assesses the minerals and fuels price-risk exposure of southern African countries - for imports and exports; suggests ways to manage this price risk; and identifies obstacles to such price risk management.

Domestic commodity price stabilization arrangements often been scrapped as part of recent economic reforms. Together with the failure of international commodity agreements, this has meant that management of commodity price risks in developing countries has to be undertaken by producers and consumers. Developing country access to international financial markets to hedge these risks is difficult but can be improved by removing regulatory and institutional barriers to the securitization of… عرض المزيد

Domestic commodity price stabilization arrangements often been scrapped as part of recent economic reforms. Together with the failure of international commodity agreements, this has meant that management of commodity price risks in developing countries has to be undertaken by producers and consumers. Developing country access to international financial markets to hedge these risks is difficult but can be improved by removing regulatory and institutional barriers to the securitization of commodity stocks and the freeing up of international transactions in both commodities and foreign currency. Education of producers, consumers, intermediaries and government on the potential roles of financial markets will also assist. عرض أقل

Using futures and options markets, grain importers can effectively price purchases at any time they want, irrespective of physical purchases; similarly, they can purchase options to warehouse "paper grain" at relatively low storage costs, thus replacing expensive physical stocks. Importing agencies can also ensure that they are within their budgets, or that long-term purchasing prices are within their means. Two developments may have made it worthwhile for importers not yet using risk… عرض المزيد

Using futures and options markets, grain importers can effectively price purchases at any time they want, irrespective of physical purchases; similarly, they can purchase options to warehouse "paper grain" at relatively low storage costs, thus replacing expensive physical stocks. Importing agencies can also ensure that they are within their budgets, or that long-term purchasing prices are within their means. Two developments may have made it worthwhile for importers not yet using risk management instruments on a regular basis to re-examine their policies. First, with the conclusion of the Uruguay Round, an increasing part of grain trade is likely to take place at world market conditions, rather than on a preferential basis. Importers will be under pressure to adapt their purchasing policies to these new conditions, including the use of trading instruments. Second, risk management markets have become much more diverse and may better fit the particular needs of individual grain exporters and importers. عرض أقل

Risk management requires funding. Usually, producing or consuming entities in developing countries cannot afford to immobilize for the purpose of managing risks the convertible currency which they would normally need for upfront payments or for maintenance margins. They will be able to make systematic use of risk management markets only when they have access to some form of credit. This report concentrates on ways in which access to credit can be enhanced through over-the-counter instruments… عرض المزيد

Risk management requires funding. Usually, producing or consuming entities in developing countries cannot afford to immobilize for the purpose of managing risks the convertible currency which they would normally need for upfront payments or for maintenance margins. They will be able to make systematic use of risk management markets only when they have access to some form of credit. This report concentrates on ways in which access to credit can be enhanced through over-the-counter instruments such as swaps or commodity bonds and on possibilities for improving the supply of letters of credit. It examines how counterpart and sovereign risk factors impact on the provision of credit lines and over-the-counter risk management instruments, and then addresses the potential roles that can be played by private sector entities and governments in developing countries or economies in transition, as well as by the international community, in mitigating or avoiding the effects of these risk factors. عرض أقل

Colombia's economy has traditionally been rather a closed one. It still is - but an "opening up" is already perceptible. From 1986 (when economic policy was liberalized) to 1990, a wide range of products - commodities, in raw or processed form, and manufactures - which were formerly not exported found their place in the list of significant export products, and non-traditional exports more than tripled in volume. The diversification of the economy has helped to create employment and to increase… عرض المزيد

Colombia's economy has traditionally been rather a closed one. It still is - but an "opening up" is already perceptible. From 1986 (when economic policy was liberalized) to 1990, a wide range of products - commodities, in raw or processed form, and manufactures - which were formerly not exported found their place in the list of significant export products, and non-traditional exports more than tripled in volume. The diversification of the economy has helped to create employment and to increase export earnings. Moreover, export-related commodity diversification has had important linkage effects. For example, the infrastructure created primarily for flower exports has played a significant role in making fruit exports possible. Backward linkages have resulted in the creation of companies producing, for example, packaging materials, and art and graphics firms - essential for further diversification into brand name products. Diversification has also had learning effects, creating both the managerial and the marketing skills needed for entering into yet other activities. عرض أقل

A manual on procedures and mechanisms to be used for proper and safe use of market-based risk management instruments.

A joint UNCTAD/World Bank study on the use of international commodity futures markets by Southeast Asian companies, and the potential for new commodity exchanges/contracts in Southeast Asia.

A chapter in the book of Budi Hartantyo & Hidde P. Smit (eds.), International Commodity Development Strategies

Report of a Joint Inspection Unit, Ministry of Cooperation investigation into food aid, grain markets and food security in Mali.

Master Thesis, entitled "An evaluation of agricultural policy in Mali, with special attention to the economic and political conditions for policy improvement". The aim of this paper is to investigate what improvements are possible in Mali's agricultural policy, taking into account the ecological, economic, social and political relations in the country. Given the country's failure to achieve its potential as a bread basket for the region, an attempt is made to answer the following questions:… عرض المزيد

Master Thesis, entitled "An evaluation of agricultural policy in Mali, with special attention to the economic and political conditions for policy improvement". The aim of this paper is to investigate what improvements are possible in Mali's agricultural policy, taking into account the ecological, economic, social and political relations in the country. Given the country's failure to achieve its potential as a bread basket for the region, an attempt is made to answer the following questions: What shortcomings can be identified in the agricultural policy pursued so far? What policy changes could overcome these shortcomings? To what extent can Mali mobilize the resources needed to implement those policy changes? To what extent is it possible to implement policy improvements, given the interests of different power groups? عرض أقل