Commodity Management Blog

Innovative Ideas and Thought Leadership for Volatile Commodity Marketplace

Triple Point’s QMASTOR PortVu bulk terminal management system has won the prestigious International Bulk Journal (IBJ) IT Solutions Award and was recognized for delivering a significant, measurable return-on-investment. 

QMASTOR PortVu was honored with this award because it is the only complete, integrated bulk terminal management system that manages all the complexities of port operations. It is a proven, multi-lingual solution that is being used across the world by leading resource companies and terminals. PortVu optimizes decision-making and delivers substantial cost savings by integrating terminal operations with suppliers, customers, transport providers, agents, laboratories, and other supply chain partners through…

Research and consultancy firm, Finadium, published an interesting report last week on the challenges that new regulations (MiFID and Dodd-Frank) are set to bring collateral management for OTC trading. The report highlights how dramatic the changes are going to be, and according to the market participants they interviewed, how technology is the only viable solution to effectively manage collateral in a post regulation world.

MiFID and Dodd-Frank central clearing mandates are going to change OTC trading forever. The increase in cash collateral requirements and daily margin calls will have a large impact.  According to a recent Bloomberg article

Automotive World published an excellent article on the impact of rising and volatile raw material prices on the automotive industry.

A couple of weeks ago, I noted that commodity volatility had hurt Ford’s third quarter earnings.  This article makes the point that raw material prices are creating difficulty for the entire supply chain.

“Materials suppliers struggle to make a profit; Tier suppliers and OEMs find themselves torn between raising prices and suffering the cost increases.  Ultimately, it is the end-consumer who bears the brunt of increased finished product costs.  The automotive industry is particularly sensitive to price rises, especially…

I’m excited to share the news that Triple Point has announced its acquisition of QMASTOR. QMASTOR is the premier provider of software solutions to manage the tonnage, quality, and value of coal and mineral supply chains from “pit” to the point of export, refining operations, or consumption. As the Australian-based company says itself, their solutions help deliver “the right bulk material in the right place at the right time and at the right cost.”

Consistent with Triple Point’s previous acquisitions (Energy Crossroads, TradeWell Systems, CoralGrid, INSSINC, ROME, Softmar, and Enerbility), the acquisition of QMASTOR is completely complementary to the rest…

Ford Motor Company reported 3rd quarter earnings and noted how commodity volatility hurt margins during its earnings’ call.

In fact, reported earnings were harmed both coming and going; as commodities rose in price and again as they came down.  Ford’s operating margin was down 1.4% from a year ago, and this “margin decline can be more than explained by higher commodity costs,” stated Lewis Booth, Ford’s Chief Financial Officer.  “Contribution costs, which include material cost, warranty expense and freight and duty, increased.  About 2/3 of the increase is due to commodities.”

Okay… margins hurt by rising commodity prices is a…

After four long years of debate, the CFTC has finally decided to impose position limits on commodity traders in an effort to curtail speculative trading.  The new limits will cover 28 commodities. What does it mean and how will it affect the markets? Ed Meir, an analyst at MF Global, says that it won’t have much effect in the short term, but speculates that costs are going to rise for the end-user in the long term.  

If you’re looking for a short summary on the new ruling, I highly recommend you watch the video below with Meir.  He does an excellent…

Triple Point’s EVP, global field operations, Greg Taylor, will speak at the Low Carbon Earth Summit (LCES-2011) taking place from October 19th – 26th at the Dalian World Exposition Center in China.

LCES-2011 is a world-class summit for information exchanges to promote low carbon economy and to cover comprehensive issues from public and private sectors. Taylor’s presentation, “Navigating the Complex World of Supply Chain Management,” will underscore how increased commodity price volatility and global product movements have made sourcing and supply chain management riskier, therefore dramatically increasing the need for sophisticated commodity management solutions.

Triple Point continues to maintain…

I was listening to NPR (National Public Radio) Marketplace on the drive home from work last night.  All of sudden, I hear them talking about the Men’s Underwear Index (MUI) and the possible good economic news.  Apparently the MUI is up 5.2% – they didn’t define the 5.2% – 3rd quarter over 2nd quarter 2011, 3rd quarter 2011 over 3rd quarter 2010, etc. – but whatever, it’s still up 5.2%.

I have to admit that I’ve never heard of the Men’s Underwear Index.  I did a quick search today and the premise is that men’s underwear sales are stable during…

Oracle’s annual OpenWorld conference was held in San Francisco last week, and Triple Point’s chief technology officer, Doug Daugherty, took center stage to unveil the results of Triple Point’s Oracle Exadata benchmark study. The study took place over a two-week period in Oracle’s Exastack Lab and demonstrated Triple Point’s record performance levels for the near real-time valuation of massively large and complex commodity trade portfolios.

The Q&A session that Daugherty took part in was mediated by Judson Althoff, SVP of worldwide alliances & channels and embedded sales, Oracle. As one of three featured Oracle Exastack Ready partners, Daugherty described…

Whether you work in the front, middle or back office of a company that trades derivatives, life will be changing for you in a big way. Well, that may be a bit dramatic, but really, your current work-flow will certainly be changing. To what degree largely depends on how your company gets branded – swap dealer, major swap participant or end user.

Trading

Regardless of your company’s Dodd-Frank branding, its approach to derivative trading will most certainly be impacted. Your business processes may need to be adapted to keep records throughout a swap’s existence and for five years following final…

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