Fundamentals of Commodity Markets

About the Course

Entrima offers online education. Our eLearning offering covers various educational programmes, each being split into multiple building blocks. The educational programme “Fundamentals of Commodity Markets” is offered in a wide range of modules. Each module represents a specific subjects and/or themes.

Course Contents

Asset classes – Types of markets

  • About fixed-income, equity, real estate, FX and commodities
  • Risk-reward ratios

Commodities & commodity markets

  • About metals, softs & energy, but also freight, carbon & fibres
  • Relations & correlations

Production, storage & transport – Up-, mid- & downstream

  • Capacity
  • Analysis of availability and utilization

Market participants & their role

  • Commodity trading firms & investors
  • Risk diversification & correlation
  • Roll yield

Spot & forward markets – Physical & financial products

  • Price volatility
  • Power & Gas – Balancing

Commodity derivatives – Contract specifications & settlement

  • Physical delivery vs. cash settlement
  • ADP, TAS
  • Power & gas: Delivery period vs moment

Pricing of commodities – Price driving factors

  • Fundamental & non-fundamental price driving factors
  • Pestle & steepled analysis, incl. seasonality & mean-reversion

Commodity markets vs. Financial markets – Differences

  • Differences between the characteristics of both markets
  • A comparison is made concerning markets, products & pricing

The role of speculators

  • The impact of speculators on price levels
  • Politicians, policy makers & regulation

Exam & Certification