ETHANOL WHITE PAPER
New Whitepaper: Managing the Ethanol Complex
SolArc, Inc. commissions whitepaper from CommodityPoint
CommodityPoint has released a new whitepaper describing the top issues within the biofuel supply chain, examining four areas of particular concern for market participants: managing the complex supply chain; accurately modeling the business in CTRM systems; managing the portfolio of commodities and market risks found in this market; and capturing and tracking the numerous secondary costs associated with biofuel production and blending. Less than half of all biofuels participants use a commercial Commodity Trading & Risk Management System, and the whitepaper describes the tradeoffs that occur when modeling portfolio and market risk.
Top Five Concerns in Commodity Trading:
- Risk Management
- Understanding the Factors behind Price Formation
- Credit and Collateral Requirements
- Portfolio Management
- Reporting and Data Retrieval
The whitepaper discusses the competing market forces, regulatory mandates, environmental considerations and challenging economic conditions which create complexity even in the best of times, while the provisions of price/unprice optionality to farmers creates additional portfolio management complexity.
SolArc is pleased to present this CommodityPoint paper which addresses the complexity of capturing and reflecting real-time changes within multi-commodity portfolios, while describing the analytics and metrics that are key indicators required by executives and risk management professionals.
