Insight Blog

The essential perspective on global commodities


23 Sep 2021

Spot and term, Australian supply and Asian demand: Indelible links in the LNG market

When it comes to the trading of LNG cargoes, why do stakeholders see long-term and spot as two separate markets? To answer this question, one can examine the differences in the pricing basis between the two. But this may not provide the most accurate view since one can’t separate the two sides of the same coin. As the LNG market matures, the commodity’s spot price has emerged as the driving force behind prices of all contract types, including long-term contracts

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22 Sep 2021

Expectation vs reality: The case of the large corn crop that grew small in Brazil

The stark contrast between expectations and reality is not unfamiliar to commodity markets. One of the most recent examples can be seen in the case of Brazil’s corn production. In December 2020, the US Department of Agriculture expected corn production in Brazil to hit 110 million mt for the agricultural year 2020-21. In the same month, the National Supply Company (CONAB) from the Brazilian Ministry of Agriculture estimated a corn production of 102.59 million mt

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21 Sep 2021

Fuel for Thought: Spare capacity in focus as OPEC+ output hikes coincide with rising oil security risks

Spare capacity is the oil sector’s ultimate shock absorber. These buffers shot up to COVID-19 -induced 35-year highs but are now rapidly reducing. A rising trend of security incidents in the Middle East, a tentative demand recovery and OPEC+ pumping more could see oil risk premium back on the market’s radar

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