A commodity market is a market that trades in the primary economic sector rather than manufactured products, such as cocoa, fruit and sugar. Hard commodities are mined, such as gold and oil. Futures contracts are the oldest way of investing in commodities. Commodity markets can include physical trading and derivatives trading using spot prices, forwards, futures, and options on futures. Farmers have used a simple form of derivative trading in the commodity market for centuries for price risk management.
Bunge Global SA (BUN-ghee) is a global agribusiness and food company, incorporated in Geneva, Switzerland and headquartered in St. Louis, Missouri, United States.
The Corn Laws were tariffs and other trade restrictions on imported food and corn enforced in the United Kingdom between 1815 and 1846. The word corn in British English denoted all cereal grains, including wheat, oats and barley. They were designed to keep corn prices high to favour domestic producers, and represented British mercantilism. The Corn Laws blocked the import of cheap corn, initially by simply forbidding importation below a set price, and later by imposing steep import duties, making it too expensive to import it from abroad, even when food supplies were short. The House of Commons passed the corn law bill on 10 March 1815, the House of Lords on 20 March and the bill received royal assent on 23 March 1815.
A futures exchange or futures market is a central financial exchange where people can trade standardized futures contracts defined by the exchange. Futures contracts are derivatives contracts to buy or sell specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future. Futures exchanges provide physical or electronic trading venues, details of standardized contracts, market and price data, clearing houses, exchange self-regulations, margin mechanisms, settlement procedures, delivery times, delivery procedures and other services to foster trading in futures contracts. Futures exchanges can be organized as non-profit member-owned organizations or as for-profit organizations. Futures exchanges can be integrated under the same brand name or organization with other types of exchanges, such as stock markets, options markets, and bond markets. Non-profit member-owned futures exchanges benefit their members, who earn commissions and revenue acting as brokers or market makers. For-profit futures exchanges earn most of their revenue from trading and clearing fees.
The Archer-Daniels-Midland Company, commonly known as ADM, is an American multinational food processing and commodities trading corporation founded in 1902 and headquartered in Chicago, Illinois. The company operates more than 270 plants and 420 crop procurement facilities worldwide, where cereal grains and oilseeds are processed into products used in food, beverage, nutraceutical, industrial, and animal feed markets worldwide.
A feedlot or feed yard is a type of animal feeding operation (AFO) which is used in intensive animal farming, notably beef cattle, but also swine, horses, sheep, turkeys, chickens or ducks, prior to slaughter. Large beef feedlots are called concentrated animal feeding operations (CAFO) in the United States and intensive livestock operations (ILOs) or confined feeding operations (CFO) in Canada. They may contain thousands of animals in an array of pens.
Fodder, also called provender, is any agricultural foodstuff used specifically to feed domesticated livestock, such as cattle, rabbits, sheep, horses, chickens and pigs. "Fodder" refers particularly to food given to the animals, rather than that which they forage for themselves. Fodder includes hay, straw, silage, compressed and pelleted feeds, oils and mixed rations, and sprouted grains and legumes. Most animal feed is from plants, but some manufacturers add ingredients to processed feeds that are of animal origin.
There are different systems of feeding cattle in animal husbandry. For pastured animals, grass is usually the forage that composes the majority of their diet. In turn, this grass-fed approach is known for producing meat with distinct flavor profiles. Cattle reared in feedlots are fed hay supplemented with grain, soy and other ingredients to increase the energy density of the feed. The debate is whether cattle should be raised on fodder primarily composed of grass or a concentrate. The issue is complicated by the political interests and confusion between labels such as "free range", "organic", or "natural". Cattle raised on a primarily foraged diet are termed grass-fed or pasture-raised; for example meat or milk may be called grass-fed beef or pasture-raised dairy. The term "pasture-raised" can lead to confusion with the term "free range", which does not describe exactly what the animals eat.
SGS is a Swiss multinational company headquartered in Geneva, which provides inspection, verification, testing and certification services. Its 98,000 employees operate a network of 2,650 offices and laboratories worldwide. It ranked on Forbes Global 2000 in 2015, 2016, 2017, 2020 and 2021.
The Society of Construction Arbitrators is a learned society of arbitrators, adjudicators and mediators in the construction industry, based in London. It has as its object the development and support of commercial methods of alternative dispute resolution. Members of the Society include architects, engineers, surveyors and lawyers from around the world.
A commodity broker is a firm or an individual who executes orders to buy or sell commodity contracts on behalf of the clients and charges them a commission. A firm or individual who trades for his own account is called a trader. Commodity contracts include futures, options, and similar financial derivatives. Clients who trade commodity contracts are either hedgers using the derivatives markets to manage risk, or speculators who are willing to assume that risk from hedgers in hopes of a profit.
The Beef Hormone Dispute is one of the most intractable agricultural controversies since the establishment of the World Trade Organization (WTO).
Construction law is a branch of law that deals with matters relating to building construction, engineering, and related fields. It is in essence an amalgam of contract law, commercial law, planning law, employment law and tort. Construction law covers a wide range of legal issues including contract, negligence, bonds and bonding, guarantees and sureties, liens and other security interests, tendering, construction claims, and related consultancy contracts. Construction law affects many participants in the construction industry, including financial institutions, surveyors, quantity surveyors, architects, carpenters, engineers, construction workers, and planners.
The Arbitration Roundtable of Toronto is made up of several litigators, academics, arbitrators, and mediators from the Greater Toronto Area. The group promotes arbitration as an alternative method of conflict resolution over litigation, especially in commercial suits. Members include commercial litigators from Toronto law firms including some of the Seven Sisters of Bay Street. Each member has experience and interest in promoting commercial Arbitration. The group dedicates its time to encouraging this form of Dispute resolution through seminars, papers, and talks.
Feeder cattle, in some countries or regions called store cattle, are young cattle mature enough either to undergo backgrounding or to be fattened in preparation for slaughter. They may be steers or heifers. The term often implicitly reflects an intent to sell to other owners for fattening (finishing). Backgrounding occurs at backgrounding operations, and fattening occurs at a feedlot. Feeder calves are less than 1 year old; feeder yearlings are between 1 and 2 years old. Both types are often produced in a cow-calf operation. After attaining a desirable weight, feeder cattle become finished cattle that are sold to a packer. Packers slaughter the cattle and sell the meat in carcass boxed form.
Dr Phytos Poetis, OM, Dr iur (Hamburg), FCIArb, Barrister, is an international lawyer.
COCERAL is a European association, representing the trade in cereals, rice, feedstuffs, oilseeds, olive oil, oils and fats and agrosupply.
Bunge SA v Nidera BV[2015] UKSC 43 is a landmark decision of the United Kingdom Supreme Court in the area of commercial law, providing guidance on the assessment of damages arising out of a wrongful repudiation of a contract for the sale of goods.
Feed manufacturing refers to the process of producing animal feed from raw agricultural products. Fodder produced by manufacturing is formulated to meet specific animal nutrition requirements for different species of animals at different life stages. According to the American Feed Industry Association (AFIA), there are four basic steps:
- Receive raw ingredients: Feed mills receive raw ingredients from suppliers. Upon arrival, the ingredients are weighed, tested and analyzed for various nutrients and to ensure their quality and safety.
- Create a formula: Nutritionists work side by side with scientists to formulate nutritionally sound and balanced diets for livestock, poultry, aquaculture and pets. This is a complex process, as every species has different nutritional requirements.
- Mix ingredients: Once the formula is determined, the mill mixes the ingredients to create a finished product.
- Package and label: Manufacturers determine the best way to ship the product. If it is prepared for retail, it will be "bagged and tagged," or placed into a bag with a label that includes the product's purpose, ingredients and instructions. If the product is prepared for commercial use, it will be shipped in bulk.
Live cattle is a type of futures contract that can be used to hedge and to speculate on fed cattle prices. Cattle producers, feedlot operators, and merchant exporters can hedge future selling prices for cattle through trading live cattle futures, and such trading is a common part of a producer's price risk management program. Conversely, meat packers, and merchant importers can hedge future buying prices for cattle. Producers and buyers of live cattle can also enter into production and marketing contracts for delivering live cattle in cash or spot markets that include futures prices as part of a reference price formula. Businesses that purchase beef as an input could also hedge beef price risk by purchasing live cattle futures contracts.
