Extreme market risk is hardly new for manufacturers, merchants and end-users in the agricultural commodity markets. Heightened commodity price volatility directly and indirectly affects profitability, which then complicates purchasing, budgeting and other strategic business decision-making. During the last couple of years, unprecedented commodity volatility has combined with increased consumer demand; speculators pushing commodity prices upward – reminiscent of the energy markets before deregulation – increased regulatory risk around product-tracking and record-keeping; and bouts of heightened credit and liquidity risk
Source: Risk magazine | 10 Jan 2011
Categories: Energy
Topics: Market risk, Commodities, Agriculture, Volatility, Liquidity risk, OpenLink
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