Physical Commodity

[performance]

I know this probably sounds sophmoric, but I have been searching for the answer to this question for a month with no real answers.



1) If a person has an actual physical commodity in hand, ie. CPO, where can one find a guaranteed buyer on a monthly basis? (Please let me know how to contact these buyers).



2) Is there a way to leverage the physical commodity directly on say JADE or Bursa Malaysia? ***The reason is to have guaranteed sale of the product on a monthly basis. It may seem silly to sell the physical commodity on the financial market, but if someone can explain the process, then it would guarantee monthly purchase with the ease and security of the JADE or Bursa Malaysia exchange.



3) If there is a way to sell the physical commodity directly on JADE or Bursa Malaysia, which companies or brokers are the best to contact to get started?



Thanks!

[aaron]

(1) depends on the commodity. Generally, you have to be in the business of dealing in the commodity, or partner with someone who is. No one's anxious to buy heating oil for their hotel from a speculator who happens to own some heating oil. They want a regular supplier who knows something about the commodity and how to deliver it.



(2) I think you want to deliver into futures contracts. That is, you could go short commodity futures contracts for the next few months and deliver your commodity instead of getting out of the contract. Look at the exchange specifications for delivery. In most cases, this will not be economic, because the exchange specifications will not be the most sensible economic arrangements for your commodity. That is,  you will spend money to meet the precise contract grade and location, and more money to get someone to certify that.



(3) I can't help you with.

[Johnny]

[i]"I know this probably sounds sophmoric, but I have been searching for the answer to this question for a month with no real answers."
[/i]


Was this you asking in [url=/Show%20Post.aspx?PostIDKey=105320]this thread?[/url]

[HeatOilTrader]

1) I don't know about CPO but in the past I've used industry directories i.e. Stalsby, perhaps there's something similar for ags



2) If an exchange lists CPO for physical delivery and you can deal with their delivery location, terms and specs that's all you need.  10 seconds on bursamalaysia.com provided me with this



3) Also from bursamalaysia.com

[mencey]

if you re talking about palm oil, that is your original question, you need to know what type of palm oil will be produced and how is going to be milled, this determines the acids on the final product.



Once the palm oil is milled part goes to the human consumption (highest quality), part to the industry (medium quality) and then you have a third part (low quality) that is not useful for any of the previous uses but can be used to produce electricity as liquid biomass in diesel engines.



So basically you do not need to bring it to the financial markets but to the end user directly, however a long term supply contract is not easy do negotiate if you do not have previous experience and do not control things like freight and cargo



I have a partnership with a project development company and I could be interested in the low quality palm oil if acid is not too high (acid is bad for diesel engines).



Don't say you had no real answers, you jut did not look. So that is enough for free advice

.

[mencey]

if you are talking about palm oil I am looking for 30.000 metric tons per month crude palm oil CIF Rotterdam, Bremen, Hamburg



also soja oil 80.000 metric tons per month CIF Italy, Hamburg, Rotterdam, Rostock in 20k or 30k tons shipments

[performance]

Hi Mencey,



Please forward contact information so that I can get both orders filled for you.



Warmest Regards

[mencey]

drop me and email with your contact details at menceyadvisorsgmailcom