![](https://commoditytradingweek.com/wp-content/uploads/2024/03/Leaderboard-1200x150-1.png)
![Supply Chain Risk in the Spotlight](https://commoditytradingweek.com/wp-content/uploads/2022/06/COMRISK-Supply-Chain-Risk-In-The-Spotlight-100x100.png)
All PostsArticlesBlogDigitalisation & TechnologyMarket Updates & OutlookNet Zero, Sustainability & ESGOperations, Shipping & Supply ChainSupply Chain
todayDecember 13, 2023
Being a dynamic and essential component of the global economy the commodity trading market is a key player in the sustainability scenarios the global economy is looking at. Sustainability plays a crucial role in the exchange of raw materials, energy resources, and agricultural products and this roll will be growing in time. It is not just revolving around supply and demand but also around the long-term environmental and ethical impact. Over the years, the commodity trade market has seen various trends and shifts, influenced by factors like supply and demand, geopolitical events, and technological advancements. In this article, we will explore some of the recent trends and offer an outlook for the commodity trading market.
One of the most significant shifts in the commodity trading market is the growing emphasis on environmental, social, and governance (ESG) factors. Investors, regulators, and consumers are increasingly demanding transparency and responsible practices from companies involved in the commodity trade as they are placing value on ethical and responsible trading practices. This trend leads to the development of sustainable and ESG-compliant trading practices. Companies are now focusing on reducing their carbon footprint and promoting ethical sourcing of commodities, thereby aligning their strategies with the broader global sustainability agenda. This focus extends to every aspect of the supply chain, from responsible sourcing to minimizing carbon footprints.
The commodity trading industry has been experiencing a digital transformation, with the adoption of advanced technologies such as blockchain, artificial intelligence, and data analytics. These technologies have streamlined trade processes, reduced operational inefficiencies, and enhanced risk management. Additionally, they have improved transparency and traceability, making the trading of commodities more efficient and secure.
Having real-time data at hand in combination with ‘what-if’ scenarios gives management an unparalleled insight.
Geopolitical tensions and conflicts continue to impact the commodity trading market. Trade restrictions, sanctions, and geopolitical instability can disrupt the flow of commodities. Recent examples include the U.S.-China trade war and the sanctions on Iranian oil exports. Traders and investors are closely monitoring these developments, as they can have a profound impact on commodity prices and supply chains.
The COVID-19 pandemic exposed vulnerabilities in global supply chains, affecting the commodity trading market. Supply chain disruptions, labor shortages, and transportation challenges have resulted in significant price volatility for various commodities. Companies are now reevaluating their supply chain strategies and considering diversification to mitigate future risks.
The shift towards renewable energy sources, such as solar and wind, has influenced the commodity trading market. Demand for rare earth metals used in the production of renewable energy technologies, like lithium and cobalt, has surged. This transition is expected to continue, creating opportunities for commodities related to clean energy. This trend is driven by the global shift toward sustainable energy sources. Sustainable commodity trading is heavily influenced by this growing need for renewables. Sustainability in commodity trading involves ensuring that products are ethically and responsibly sourced. This trend goes beyond adhering to local and international regulations and includes efforts to support fair labor practices, reduce deforestation, and minimize waste in the supply chain. Buyers and sellers are collaborating to create transparent and ethical supply chains that reflect these values.
The emphasis on sustainability and ESG factors is likely to intensify in the commodity trading market. Companies will need to adapt to these evolving standards to maintain investor confidence and meet regulatory requirements. Sustainable practices and responsible sourcing will become even more critical in the coming years. Companies that do not align their practices with ESG principles may face challenges accessing capital, securing trading partners, or meeting regulatory requirements. To thrive in this market, organizations will need to continue prioritizing sustainability in their strategies.
The digital transformation of the commodity trading industry will persist, with technology playing an ever more prominent role. The adoption of blockchain for supply chain traceability and smart contracts for trade execution will further streamline processes and reduce the risk of fraud. These innovations will create more efficient and transparent markets. Technically it is getting more and more easy to integrate solutions and combine data, challenge is now shifting to how to process all that data and use it in the best possible way in business processes.
Geopolitical risks are expected to remain a significant factor in commodity trading. As global tensions ebb and flow, traders and investors will need to stay vigilant and adaptable to mitigate potential disruptions. Diversification of supply sources and risk management strategies will be essential.
The transition to renewable energy sources will continue to reshape the commodity trading landscape. As the world strives to reduce its carbon footprint, the demand for traditional fossil fuels may decline, while the demand for metals and minerals required for clean energy technologies will increase. The fast growing biofuels demand is also a result of this transition. Investors and traders will need to monitor these shifts in demand carefully.
As the world confronts the challenges of climate change, carbon trading is set to become an integral part of sustainable commodity trading. Companies will use carbon trading to offset emissions and support projects that contribute to carbon reduction. This practice will play a pivotal role in helping businesses achieve their sustainability goals.
The commodity trading market is undergoing a transformation driven by sustainability, digitalization, geopolitical uncertainties, and the global transition to renewable energy sources. From ESG integration to renewable energy commodities and carbon trading, sustainability is reshaping the way commodities are bought and sold. These trends and outlooks indicate that adaptability, innovation, and responsible practices will be critical for companies and individuals operating in this ever-evolving market. Keeping a close eye on the shifting market developments and embracing the changes will be key to success in the world of commodity trading. Those who adapt to this new sustainable paradigm will be the ones best positioned for long-term success.
DycoTrade supports its customers with a end-to-end Commodity Trade & Risk Management solution, build on the strong ERP foundation of the Microsoft Dynamics 365 framework.
DycoTrade 365 enables agility and insight for Commodity trading companies and commodity intensive enterprises and helps to drive faster adoption throughout all business layers. Broader usage and easier maintenance through continuous updates and enhancements emphasize simplicity and prevents business interruption.
DycoTrade Commodity Trade and Risk Management 365 is created with the goal to deliver the industry standard solution for commodity trading companies worldwide and enable them to increase revenue, reduce cost and manage risks.
With any questions, you are more than welcome to contact us at DycoTrade. Do you want to explore our solutions or need more info? Contact us at info@dycotrade.com.
DycoTrade B.V. | Molenvlietweg 26 | 1432 GW | The Netherlands | info@dycotrade.com | www.dycotrade.com | +31 (0)20 – 761 0437
Written by: Commodities People
Carbon Footprint Client Content Digitalisation Energy Transition ESG Geopolitical Supply Chain Management Sustainability Technology / Digitalisation
labelAll Posts todayDecember 8, 2023
Watch key insights from Commodity Trading Week Europe 2023, emphasizing networking, industry trends, and innovations. A valuable resource for understanding the evolving landscape of commodity trading.
LME INVENTORY REPORT TODAY The London Metal Exchange (LME) is the futures exchange with the world’s largest market in options and futures contracts on base and other metals. LME Inventory Read more
Cardamom futures were trading lower during the morning trade in the domestic market on Friday as speculators booked profits at prevailing levels amid easing demand in the spot market. Analysts Read more
Mentha oil futures were trading higher during the morning trade in the domestic market on Thursday amid pick-up in demand at domestic spot market and restricted supplies from producing regions. Read more
Zinc futures were trading lower during the afternoon trade in the domestic market on Wednesday as speculators trimmed positions amid easing demand in the spot market. Analysts said offloading of Read more
Gold prices inched down on Monday pressured by a stronger equity market, with the latest U.S. jobs report easing fears of inflation and faster U.S. rate hikes, reviving risk appetite Read more
In a recent interview on The Daniela Cambone Show, financial expert Robert Kiyosaki shared alarming predictions about an impending market crash, […] The post Robert Kiyosaki: The Biggest Stock Market Read more
The latest economic data paints a troubling picture for the U.S. economy. With inflation persisting and key sectors showing signs of […] The post Recession Watch: New Data Signals Trouble Read more
In a recent interview with Daniela Cambone, billionaire Rob McEwen shared his bold predictions for the future of the gold markets. […] The post This Asset Will Go 10x as Read more
Every year, the most powerful central bankers and policymakers from around the world gather in Jackson Hole, Wyoming, to discuss monetary […] The post Behind Closed Doors: The Meeting at Read more
📞 ACT NOW, BEFORE IT’S TOO LATE: Gregory Mannarino stresses that the economic system is on shaky ground, and gold is […] The post Bank of America Being “Set-Up” to Read more
Gold is one of the most recognized words in the world. However, little is known by the casual citizen about gold aside from its monetary value—more specifically, where it comes Read more
Investing in platinum and palladium may not be as familiar to previous metals buyers as investing in gold and silver. While humans have mined and traded gold and silver for Read more
For centuries, nations and central banks have accumulated reserves of gold to conduct trade, pay for military campaigns, and fund exploration and settlement. Before the advent of fiat — paper Read more
What is the Gold Standard? The ‘Gold Standard’ is a monetary system in which a country’s currency (typically paper money) has its value directly linked to gold. Under this system, Read more
Shadow Debt is a concerning phenomenon that gained traction during the COVID-19 pandemic. It can have a devastating impact on your financial future. But what is shadow debt, and what’s Read more
Jai Shri Ram! http://www.fxlive.in/ "XAUUSD" Weekly Trading View: Last week we clearly said, we are expected fall in XAUUSD and made high of $2529.16 (not able to break previous high) Read more
Jai Shri Ram! http://www.fxlive.in/ "XTIUSD" Weekly Trading View: Last week we had seen good selling movement and made high of $74.37 and after that made new low of $67.19 and Read more
Jai Shri Ram! http://www.fxlive.in/ "NFP" Call For Risky Traders "XAUUSD" Trading Signal: after our buy signal, made new low $2506.73, now hit our 1st target $2527, safe traders book good Read more
Jai Shri Ram! http://www.fxlive.in/ "NFP" Call For Risky Traders "XAUUSD" Trading Signal: Buy between $2513 to $2508 with stop loss of $2497 and expected target $2527 & $2540 Regards The Read more
Jai Shri Ram! http://www.fxlive.in/ NSE F&O September "Axis Bank" Trading View & Signal: after our sell signal, made new high of 1197.85, now hit our 1st target 1160, safe traders Read more
Copyright 2024 Commodities People
ABOUT MOLECULE
Molecule is the modern and reliable ETRM/CTRM. Built in the cloud with an intuitive, easy-to-use experience at its core, Molecule is the alternative to the complex systems of the past. With near real-time reporting, 30-plus integrations, and headache-free implementations, Molecule gets your ETRM/CTRM out of your way – because you have more valuable things to do with your time.PARTNER
Molecule is the modern and reliable ETRM/CTRM. Built in the cloud with an intuitive, easy-to-use experience at its core, Molecule is the alternative to the complex systems of the past. With near real-time reporting, 30-plus integrations, and headache-free implementations, Molecule gets your ETRM/CTRM out of your way – because you have more valuable things to do with your time.ABOUT cQuant
Founded in 2015, cQuant.io is an industry leader in analytic solutions for energy and commodity companies. Specializing in Total Portfolio Analysis, cQuant’s cloud-native SaaS platform simulates all risk factors, optimizes portfolio decisions, and includes dynamic reports and dashboards for better decision making. cQuant’s customers have greater insight into their financial forecasts and the drivers of value and risk in their business.
cQuant.io is a team of senior quantitative model developers, experienced energy analysts, software developers and cloud infrastructure experts. Leveraging decades of energy experience, cQuant.io is committed to serving the present and future analytic landscape with the most accurate models and highest performance in the industry. The field of analytics is changing rapidly and cQuant.io is dedicated to offering the latest advantages to their customers.LEAD ANALYTICS PARTNER
Founded in 2015, cQuant.io is an industry leader in analytic solutions for energy and commodity companies. Specializing in Total Portfolio Analysis, cQuant’s cloud-native SaaS platform simulates all risk factors, optimizes portfolio decisions, and includes dynamic reports and dashboards for better decision making. cQuant’s customers have greater insight into their financial forecasts and the drivers of value and risk in their business.ABOUT Digiterre
Digiterre is a software and data engineering consultancy that enables technological and organisational transformation for many of the world’s leading organisations. We envisage, design and deliver software and data engineering solutions that users want, need and love to use.PARTNER
Digiterre is a software and data engineering consultancy that enables technological and organisational transformation for many of the world’s leading organisations. We envisage, design and deliver software and data engineering solutions that users want, need and love to use.ABOUT GEN10
Gen10 focus on making the day-to-day tasks of commodity and carbon trading faster and simpler through automation and collaboration. Our technology empowers our clients, completing the feedback loop between trading and finance to support smarter, safer trading decisions.PARTNER
Gen10 focus on making the day-to-day tasks of commodity and carbon trading faster and simpler through automation and collaboration. Our technology empowers our clients, completing the feedback loop between trading and finance to support smarter, safer trading decisions.ABOUT CAPSPIRE
capSpire is a global consulting and solutions company that creates, customizes, and implements value-driving technology for commodity-focused organizations. Fueled by direct industry experience in commodities trading, risk management and analytics, they offer expertise in business process advisory, managed services and operations consulting.
PARTNER
capSpire is a global consulting and solutions company that creates, customizes, and implements value-driving technology for commodity-focused organizations. Fueled by direct industry experience in commodities trading, risk management and analytics, they offer expertise in business process advisory, managed services and operations consulting.ABOUT QUOR
In the Commodity Trading and Management business, expertise emerges as the most valuable resource. A deep understanding of the commodity trade lifecycle is what makes Quor Group, the leading Commodity Trading, and Commodity Management solutions provider.RISK SUBJECT EXPERT
In the Commodity Trading and Management business, expertise emerges as the most valuable resource. A deep understanding of the commodity trade lifecycle is what makes Quor Group, the leading Commodity Trading, and Commodity Management solutions provider.ABOUT RadarRadar
We are RadarRadar (formerly Tradesparent). Experts in the commodity trade and processing industry. Operating in the most fundamental industries of the world, food, energy and other commodities. Since 2010, we deliver high profile projects for the world’s leading commodity producers, traders, and processors. We work with our clients to configure bespoke and extendable data solutions, enabling their successful digital transformation.SPONSOR
We are RadarRadar (formerly Tradesparent). Experts in the commodity trade and processing industry. Operating in the most fundamental industries of the world, food, energy and other commodities. Since 2010, we deliver high profile projects for the world’s leading commodity producers, traders, and processors. We work with our clients to configure bespoke and extendable data solutions, enabling their successful digital transformation.ABOUT SOS Mediterranee
SOS MEDITERRANEE is a European, maritime-humanitarian organisation for the rescue of life in the Mediterranean. It was founded by European citizens who chartered a rescue vessel in order to save people in distress in the Central Mediterranean – the in the world’s most deadly migration route. Our four headquarters are located in Berlin (Germany), Marseilles (France),
CHARITY PARTNER
SOS MEDITERRANEE is a European, maritime-humanitarian organisation for the rescue of life in the Mediterranean. It was founded by European citizens who chartered a rescue vessel in order to save people in distress in the Central Mediterranean – the in the world’s most deadly migration route. Our four headquarters are located in Berlin (Germany), Marseilles (France),
ABOUT WISTA Switzerland
ASSOCIATION PARTNER
WISTA Switzerland is a key global shipping and trading hub, with regional clusters in the Geneva Lake area, Zug/Zurich and Locarno. The shipping and trading activity in Switzerland provides over 35’000 jobs and represents 3.8% of the Swiss GDP. Switzerland, and Geneva in particular, is also home to international organisations such as the World Trade Organization (WTO) and the European Free Trade Association (EFTA) and the United Nations Conference on Trade and Development (UNCTAD).
WISTA Switzerland was founded in Geneva in 2009 and incorporated according to the WISTA International statute in January 2010. The Association is active in both Geneva and Zug/Zurich chapters with the Board and Members meeting monthly to discuss topics of interest, exchange ideas and experiences. We also meet for networking events, conferences and member exclusive coaching sessions.Every year, several conferences are organized by Wista Switzerland on latest developments in the industry in both areas Geneva and Zug/Zurich.
Founded in 1983, the Club has been actively involved in the local and international Shipping and Trading community and presently is proud to have about 160 members including individuals working as shipowners, traders, charterers, logistics providers, agents, banks, insurers and lawyers as well as a large number of companies active in the market.Geneva is a global hub for Shipping and Trading and in an industry where network is key to one’s individual and to the industry’s success, the Propeller Club serves a vital role.
The Propeller Club organises a range of events which are open to the Shipping and Trading community both in Geneva and those visiting for work or pleasure. These events include monthly evening events focused on specific topics combining learning and networking opportunities. On a more social level, the Club organises networking events such as our annual events to celebrate Escalade, an annual outing on the Neptune on Lake Geneva and a summer lunch. The Club also organises drinks events to promote networking in the larger community.
The Propeller Club is in close contact with Propeller Clubs in ports and cities throughout Europe and further afield to coordinate our activities and to create value for the broader network.
ASSOCIATION PARTNER
The Propeller Club – Port of Geneva is a professional association providing opportunities for Shipping and Trading professionals to network and develop their knowledge.
Founded in 1983, the Club has been actively involved in the local and international Shipping and Trading community and presently is proud to have about 160 members including individuals working as shipowners, traders, charterers, logistics providers, agents, banks, insurers and lawyers as well as a large number of companies active in the market.Geneva is a global hub for Shipping and Trading and in an industry where network is key to one’s individual and to the industry’s success, the Propeller Club serves a vital role.
The Propeller Club organises a range of events which are open to the Shipping and Trading community both in Geneva and those visiting for work or pleasure. These events include monthly evening events focused on specific topics combining learning and networking opportunities. On a more social level, the Club organises networking events such as our annual events to celebrate Escalade, an annual outing on the Neptune on Lake Geneva and a summer lunch. The Club also organises drinks events to promote networking in the larger community.
The Propeller Club is in close contact with Propeller Clubs in ports and cities throughout Europe and further afield to coordinate our activities and to create value for the broader network.
Gafta is the international trade association representing over 1900 member companies in 100 countries who trade in agricultural commodities, spices and general produce. Gafta is headquartered in London and has offices in Geneva, Kiev, Beijing and Singapore. More than 90% of Gafta’s membership is outside the UK. With origins dating back to 1878, Gafta provides a range of important services that facilitate the movement of bulk commodities and other produce around the world.
It is estimated that around 80% of all grain traded internationally is shipped on Gafta standard forms of contract and Gafta’s arbitration service, based on English law, is highly respected around the world. Gafta also runs training and education courses, manages Approved Registers for technical trade services and provides trade policy information, and events and networking opportunities for members.
Gafta promotes free trade in agricultural commodities and works with international governments to promote the reduction of tariffs and the removal of non-tariff barriers to trade, as well as a science and evidence-based approach to international trade policy and regulatory decision making.
ASSOCIATION PARTNER
Gafta is the international trade association representing over 1900 member companies in 100 countries who trade in agricultural commodities, spices and general produce. Gafta is headquartered in London and has offices in Geneva, Kiev, Beijing and Singapore. More than 90% of Gafta’s membership is outside the UK. With origins dating back to 1878, Gafta provides a range of important services that facilitate the movement of bulk commodities and other produce around the world.
It is estimated that around 80% of all grain traded internationally is shipped on Gafta standard forms of contract and Gafta’s arbitration service, based on English law, is highly respected around the world. Gafta also runs training and education courses, manages Approved Registers for technical trade services and provides trade policy information, and events and networking opportunities for members.
Gafta promotes free trade in agricultural commodities and works with international governments to promote the reduction of tariffs and the removal of non-tariff barriers to trade, as well as a science and evidence-based approach to international trade policy and regulatory decision making.
ASSOCIATION PARTNER
The International Trade and Forfaiting Association (ITFA) is the worldwide trade association for companies, financial institutions and intermediaries engaged in trade and the origination, structuring, risk mitigation and distribution of trade debt. ITFA also represents the wider trade finance syndication and secondary market for trade assets. ITFA prides itself in being the voice of the secondary market for trade finance, whilst also focusing on matters that are relevant to the whole trade finance spectrum.
ITFA presently has close to 300 members, located in over 50 different countries. These are classified under a variety of business sectors, with the most predominant being the banking industry. Others include forfaiting, insurance underwriters, law firms, fintechs as well as other institutions having a business interest in the areas of Trade Finance and Forfaiting.
To find out more about ITFA, please visit www.itfa.org or send an email on info@itfa.org
ASSOCIATION PARTNER
The ICC Digital Standards Initiative (DSI) aims to accelerate the development of a globally harmonised, digitalised trade environment, as a key enabler of dynamic, sustainable, inclusive growth. We engage the public sector to progress regulatory and institutional reform, and mobilise the private sector on standards harmonisation, adoption, and capacity building.
The DSI is a global initiative based in Singapore, backed by an international Governance Board comprising leaders from the International Chamber of Commerce, Enterprise Singapore, the Asian Development Bank, the World Trade Organization, and the World Customs Organization.
ASSOCIATION PARTNER
BIMCO, the practical voice of shipping, is the world’s largest international shipping association, with around 2,000 members in more than 130 countries, representing over 60% of the world’s tonnage. Our global membership includes shipowners, operators, managers, brokers, and agents. BIMCO is a non-profit organisation.
ASSOCIATION PARTNER
Founded in 1972, ANRA is the Italian Corporate Risk and Insurance Managers Association. The main goal of the Association is to promote the establishment and development of risk management knowledge in Italy and to strengthen its own reputation of privileged interlocutor as well as institutional representative for matters concerning risk management. ANRA intends to offer to its members professional update programmes and the opportunity of exchanging experiences.
ASSOCIATION PARTNER
The Society of Technical Analysts (STA) www.technicalanalysts.com is one the largest not-for-profit Technical Analysis Society in the world. The STA’s main objective is to promote greater use and understanding of Technical Analysis and its role within behavioural finance as the most vital investment tool available. Joining us gains access to meetings, webinars, educational training, research and an international, professional network. Whether you are looking to boost your career or just your capabilities – the STA will be by your side equipping you with the tools and confidence to make better-informed trading and investment decisions in any asset class anywhere in the world. For more details email info@technicalanalysts.com or visit www.technicalanalysts.com
ASSOCIATION PARTNER
CTRMCenter™ is your source for everything ‘CTRM’. This online portal, managed by leading CTRM analysts – Commodity Technology Advisory LLC (ComTech), features the latest news, opinions, information, and insights on commodity markets technologies delivered by some of the industry’s leading experts and thought leaders. The site is visited by more than 1500 unique visitors per week. CTRMCenter also includes free access to all of ComTech’s research in the form of reports, white papers, interviews, videos, podcasts, blogs, and newsletters.
ASSOCIATION PARTNER
Trade Finance Global (TFG) is the leading trade finance platform. We assist companies to access trade and receivables finance facilities through our relationships with 270+ banks, funds and alternative finance houses.
TFG’s award winning educational resources serve an audience of 160k+ monthly readers (6.2m+ impressions) in print & digital formats across 187 countries, covering insights, guides, research, magazines, podcasts, tradecasts (webinars) and video.
ASSOCIATION PARTNER
HR Maritime, founded in 2008 by Richard Watts, is a Geneva based company providing services to the International Trading, Shipping and Trade Finance Industries. With a client base both within Switzerland and around the globe we offer guidance and implement tailored solutions to the range of problems besetting a company involved in the Trading, Shipping or Financing of commodities. We work with Commodity Traders, Importers and Exporters, Ship Owners and Managers, P&I Clubs, Insurance Underwriters, Trade Financiers, Lawyers and a number of associated service providers. With our broad knowledge and experience across many areas of business, geographical regions and various commodities, we are able to approach nearly any problem or situation with a practical, pragmatic and innovative solution. We are equally at home working on enhancing efficiency within the largest trading companies as with small exporters or importers looking to break into the international markets. Our services focus on Consultancy, Outsourcing and bespoke Training.
ASSOCIATION PARTNER
Headquartered in Switzerland, Commodity Trading Club is the world's largest community of professionals in commodity trading, shipping, and finance, spanning the entire globe. We provide a broad spectrum of benefits, including exclusive business networking events and a cutting-edge commodity trading platform, fostering members' career and business growth.