Thursday, April 14, 2011

EXPOSED: Glencore’s trading strategies!

Okay, the original FT Alphaville headline was "Glencore’s trading strategies disclosed!" but I went with the 1800's yellow journalism "EXPOSED" for a reason.*
From FTA:
Courtesy of Glencore’s intention to float filing on Thursday an insight (finally!) into the previously shy commodity powerhouse’s closely held trading strategies.
From the document:

Types of arbitrage strategies Many of the physical commodity markets in which Glencore operates are fragmented or periodically volatile. As a result, discrepancies generally arise in respect of the prices at which the commodities can be physically bought or sold in different geographic locations or time periods, taking into account the numerous relevant pricing factors, including freight and product quality. These pricing discrepancies can present Glencore with arbitrage opportunities whereby Glencore is able to generate profit by sourcing, transporting, blending, storing or otherwise processing the relevant commodities. Whilst the strategies used by Glencore’s business segments to generate such margin vary from commodity to commodity, the main arbitrage strategies can be generally described as being:

· Geographic – where Glencore leverages its relationships and production, processing and logistical capabilities in order to source physical commodities from one location and deliver them to another location, where such commodities can command a higher price (net of transport and/or other transaction costs)...MORE
There was a time in the spring of 2007, pre-subprime et al when I was goofin':
Darkest secrets, EXPOSED!

“Do you have a moment for the environment, sir?”
“No,” I barked as I evaded her, “I don’t!” it possible that all this marketing is cheapening the cause?
Yuban “sustainable development” coffee.(?)

Mr. Climateer, please answer the committee.
Do you now, or have you ever,
read the Times Fashion & Style section?

Farm subsidies, EXPOSED

Okay, I'll stop doing that.
I was at the Brooklyn Daily Eagle Online searchable database last night and absorbed some 1800's newspaper style/pacing. We'll switch to Readers Digest (modern).

"What do Ken Lay, Ted Turner, Sam Donaldson and David Rockefeller all have in common?"

"From 1995 to 2005, Lay, the now-deceased Enron CEO, got $23,326 for conservation land in Missouri; business mogul Turner raked in $590,823 for farms in Nebraska, South Dakota, Montana and Florida; Donaldson supplemented his earnings as a broadcast journalist with $88,308 for a livestock ranch in New Mexico; and Rockefeller, a financier and philanthropist, got $553,782 for two farms in New York."
The article mentions the 90210 zip code but that was so last century. I track the farmers in 10022 (66 of 'em, yup); 06831 (39) and 60045 (187).

All this was really just an excuse to share a couple of my favorite bookmarks:

The Brooklyn Public Library's Daily Eagle, Online database....