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Über dieses Buch

For many academics, students, and professionals, the field of commodities is a black box. This book explores commodities in a holistic manner, presenting concepts from a multidisciplinary business and financial perspective, and offering a panoramic view of the global commodity business and markets. In this book, the author presents core issues related to global commodities with recent data including COVID-19. The book introduces the key physical commodities traded globally and some related issues such as the global supply chain, global trading, transportation, storage, and how to finance global commodity trades. Then, it discusses how global commodity businesses and traders manage global risks related to commodity production (generation or extraction), transportation, storage, the final delivery, and currency exchange. Additionally, the book discusses financial commodities, the origins of global commodity derivatives and exchanges, the rationale behind the birth of commodity futures and trading, hedging, speculation, financialization, and manipulation of commodity markets, and how financial trading is executed in real life. In the last section, the author also discusses sustainability issues related to global commodities and the financial valuation aspects of the global commodity businesses supported by examples from real cases with recent data.

Inhaltsverzeichnis

Frontmatter

Chapter 1. Overview of the Global Physical Commodities

Abstract
In the first chapter, I present an overview of the physical commodities traded globally, the various categories and commodities within agricultural, metal, and energy commodities. The importance of global commodities. A little history about the birth of global commodities exchanges. And updated historical prices and quantities, the behavior of the prices of different commodities to shocks, crises, and emergencies such as COVID-19.
Murad Harasheh

Chapter 2. The Global Supply Chain of Commodities

Abstract
In this chapter, I present how the physical global supply chain is structured. The role of commodity traders in matching buyers and sellers from different parts of the globe. How commodities are transformed in space, time, and shape to meet participants’ needs and make a profit and arbitrage opportunities. Then, how international transactions in commodities trading are financed.
Murad Harasheh

Chapter 3. Risk Management in Global Commodities

Abstract
In this chapter, I present a variety of tools used in managing and mitigating different types of risks in the global commodity business. For example, insurance is a risk-sharing technique that is used to mitigate event and operational risks, diversification is a risk-reduction technique to mitigate strategic, operational, and financial risks, while hedging is a risk-transfer technique used to mitigate price and quantity risks. We will see more details on how hedging works using different types of commodity derivatives and the different kinds of markets interacting globally for risk management in commodities.
Murad Harasheh

Chapter 4. Financial Aspects of Commodities

Abstract
In this chapter, I discuss the various financial aspects related to global commodities. In particular, I cover the role and development of organized exchanges of commodities. How trading in commodities’ financial derivatives is executed through trading systems. The concept of financialization of commodity markets. And manipulation practices in global commodities.
Murad Harasheh

Chapter 5. Financial Valuation Aspects

Abstract
Commodity businesses have particular conditions that make them interesting from a financial valuation point of view; they usually operate globally, and their values are largely derived from underground reserves such as oil and gold. In this chapter, I discuss two financial valuation approaches adopted by practitioners and financial analysts applied to businesses operating in the commodity business and the natural resources. In particular, I cover the traditional Discounted Cash Flow (DCF) approach and the option models, offering practical examples.
Murad Harasheh

Chapter 6. Commodities and the Sustainability Transition

Abstract
For the last three decades, global warming and climate change and their implications have been a focal point for researchers, regulators, and politicians. The earth temperature and the GHG emissions have reached alarming levels fearing the irreversibility point, that’s why the sustainability transition has become on global agendas. Increasing earth population, economic growth, and industrialization are said to contribute to climate change. In this regard, commodities are in the heart of these factors; commodities feed economic growth, and they satisfy individuals’ needs. Therefore, in this chapter, I present the climate-related issues in commodity production, mobility, and consumption, and the global efforts and policies to minimize the negative externalities from commodities.
Murad Harasheh

Backmatter

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