Market-Based Approaches to Managing Commodity Price Risk
Contribution to the G20 Commodity Markets Sub Working Group
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| Language: | English en_US |
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Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/806381468333609379/Market-based-approaches-to-managing-commodity-price-risk http://hdl.handle.net/10986/27114 |
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okr-10986-271142021-04-23T14:04:40Z Market-Based Approaches to Managing Commodity Price Risk World Bank ACCOUNTING AVERAGE PRICE BASIS RISK BONDS CALL OPTION CALL OPTIONS COMMODITIES COMMODITY COMMODITY EXCHANGE COMMODITY EXCHANGES COMMODITY MARKETS COMMODITY PRICE COMMODITY PRICES COMMODITY RISK MANAGEMENT CONTINGENT LIABILITIES COUNTRY TO COUNTRY CURRENCY CURRENCY RISK DERIVATIVES DEVELOPING COUNTRIES ENABLING ENVIRONMENT ENERGY PRICE ENERGY PRICES EXPORTER EXPOSURE EXPOSURES FINANCIAL CRISES FINANCIAL EXPOSURE FINANCIAL INNOVATION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENT FINANCIAL INSTRUMENTS FINANCIAL PRODUCT FINANCIAL RISK FOOD COMMODITIES FOOD PRICE FOOD PRICES FORWARD CONTRACTS FUTURES FUTURES MARKETS GOVERNMENT BUDGET GOVERNMENT REVENUES HEDGES HEDGING INCOME INFORMATION SYSTEMS INSURANCE INTEREST RATE INTERNATIONAL FINANCIAL INSTITUTIONS INTERNATIONAL MARKET INVESTMENT BANK LEGAL FRAMEWORK LIQUIDITY LOAN LOW-INCOME COUNTRIES MARKET PRICE MARKET PRICES MARKET VOLATILITY OIL PRICE OIL PRICES OPTION CONTRACT OPTION CONTRACTS POLITICAL RISK PRICE FLOOR PRICE INCREASES PRICE LEVEL PRICE MOVEMENTS PRICE PROTECTION PRICE RISK PRICE RISK MANAGEMENT PRICE STABILIZATION PRICE VOLATILITY PRINCIPAL REPAYMENT PUBLIC DEBT PUBLIC DEBT MANAGEMENT PUBLICITY PUT OPTION PUT OPTIONS RISK MANAGEMENT RISK MANAGEMENT STRATEGIES RISK MANAGEMENT TOOL SALES SETTLEMENT SETTLEMENT ARRANGEMENTS SOCIAL SAFETY NETS SUPPLIERS SUPPLY CHAIN SUPPLY CHAINS SUPPLY CONTRACTS SUPPLY SHOCKS SURPLUS SWAPS TRADE FINANCE TRADED COMMODITY TRADING VOLATILITY Contribution to the G20 Commodity Markets Sub Working Group Though well-established in the commercial sector, the use of market-based price risk management is not widespread in the public sector, particularly by sovereigns. Recent volatility in energy and food prices, however, has awakened the interest of some governments to learn more about how they can either use these tools, or foster supportive environment where these tools can be used by local supply chain actors. Equally important is ensuring that non-price related risks are isolated, monitored, and managed independent of direct price exposure. This note reviews lessons learned from recent efforts to advance risk management strategies in countries vulnerable to food and energy price shocks. It focuses specifically on the use of market-based risk management approaches and use by sovereigns. For governments concerned about the risk of food price shocks, the fiscal impact is equally complicated as governments may be concerned about the impact of rising food prices on consumers, the need to finance, and potentially supply, subsidies or social safety nets for vulnerable populations or, in extreme cases, humanitarian operations. In both cases, the costs of budget uncertainty and the need to finance responses in the event of a shock can be significant. Finally, though not typically used to manage specific intra-annual or intra-seasonal price exposures, commodity-linked loans or bonds can also be used to manage exposure to price shocks on a more macro level. 2017-06-13T20:17:51Z 2017-06-13T20:17:51Z 2012-04-10 Working Paper http://documents.worldbank.org/curated/en/806381468333609379/Market-based-approaches-to-managing-commodity-price-risk http://hdl.handle.net/10986/27114 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC Publications & Research :: Working Paper Publications & Research |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English en_US |
| topic |
ACCOUNTING AVERAGE PRICE BASIS RISK BONDS CALL OPTION CALL OPTIONS COMMODITIES COMMODITY COMMODITY EXCHANGE COMMODITY EXCHANGES COMMODITY MARKETS COMMODITY PRICE COMMODITY PRICES COMMODITY RISK MANAGEMENT CONTINGENT LIABILITIES COUNTRY TO COUNTRY CURRENCY CURRENCY RISK DERIVATIVES DEVELOPING COUNTRIES ENABLING ENVIRONMENT ENERGY PRICE ENERGY PRICES EXPORTER EXPOSURE EXPOSURES FINANCIAL CRISES FINANCIAL EXPOSURE FINANCIAL INNOVATION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENT FINANCIAL INSTRUMENTS FINANCIAL PRODUCT FINANCIAL RISK FOOD COMMODITIES FOOD PRICE FOOD PRICES FORWARD CONTRACTS FUTURES FUTURES MARKETS GOVERNMENT BUDGET GOVERNMENT REVENUES HEDGES HEDGING INCOME INFORMATION SYSTEMS INSURANCE INTEREST RATE INTERNATIONAL FINANCIAL INSTITUTIONS INTERNATIONAL MARKET INVESTMENT BANK LEGAL FRAMEWORK LIQUIDITY LOAN LOW-INCOME COUNTRIES MARKET PRICE MARKET PRICES MARKET VOLATILITY OIL PRICE OIL PRICES OPTION CONTRACT OPTION CONTRACTS POLITICAL RISK PRICE FLOOR PRICE INCREASES PRICE LEVEL PRICE MOVEMENTS PRICE PROTECTION PRICE RISK PRICE RISK MANAGEMENT PRICE STABILIZATION PRICE VOLATILITY PRINCIPAL REPAYMENT PUBLIC DEBT PUBLIC DEBT MANAGEMENT PUBLICITY PUT OPTION PUT OPTIONS RISK MANAGEMENT RISK MANAGEMENT STRATEGIES RISK MANAGEMENT TOOL SALES SETTLEMENT SETTLEMENT ARRANGEMENTS SOCIAL SAFETY NETS SUPPLIERS SUPPLY CHAIN SUPPLY CHAINS SUPPLY CONTRACTS SUPPLY SHOCKS SURPLUS SWAPS TRADE FINANCE TRADED COMMODITY TRADING VOLATILITY |
| spellingShingle |
ACCOUNTING AVERAGE PRICE BASIS RISK BONDS CALL OPTION CALL OPTIONS COMMODITIES COMMODITY COMMODITY EXCHANGE COMMODITY EXCHANGES COMMODITY MARKETS COMMODITY PRICE COMMODITY PRICES COMMODITY RISK MANAGEMENT CONTINGENT LIABILITIES COUNTRY TO COUNTRY CURRENCY CURRENCY RISK DERIVATIVES DEVELOPING COUNTRIES ENABLING ENVIRONMENT ENERGY PRICE ENERGY PRICES EXPORTER EXPOSURE EXPOSURES FINANCIAL CRISES FINANCIAL EXPOSURE FINANCIAL INNOVATION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENT FINANCIAL INSTRUMENTS FINANCIAL PRODUCT FINANCIAL RISK FOOD COMMODITIES FOOD PRICE FOOD PRICES FORWARD CONTRACTS FUTURES FUTURES MARKETS GOVERNMENT BUDGET GOVERNMENT REVENUES HEDGES HEDGING INCOME INFORMATION SYSTEMS INSURANCE INTEREST RATE INTERNATIONAL FINANCIAL INSTITUTIONS INTERNATIONAL MARKET INVESTMENT BANK LEGAL FRAMEWORK LIQUIDITY LOAN LOW-INCOME COUNTRIES MARKET PRICE MARKET PRICES MARKET VOLATILITY OIL PRICE OIL PRICES OPTION CONTRACT OPTION CONTRACTS POLITICAL RISK PRICE FLOOR PRICE INCREASES PRICE LEVEL PRICE MOVEMENTS PRICE PROTECTION PRICE RISK PRICE RISK MANAGEMENT PRICE STABILIZATION PRICE VOLATILITY PRINCIPAL REPAYMENT PUBLIC DEBT PUBLIC DEBT MANAGEMENT PUBLICITY PUT OPTION PUT OPTIONS RISK MANAGEMENT RISK MANAGEMENT STRATEGIES RISK MANAGEMENT TOOL SALES SETTLEMENT SETTLEMENT ARRANGEMENTS SOCIAL SAFETY NETS SUPPLIERS SUPPLY CHAIN SUPPLY CHAINS SUPPLY CONTRACTS SUPPLY SHOCKS SURPLUS SWAPS TRADE FINANCE TRADED COMMODITY TRADING VOLATILITY World Bank Market-Based Approaches to Managing Commodity Price Risk |
| description |
Contribution to the G20 Commodity Markets Sub Working Group |
| format |
Working Paper |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Market-Based Approaches to Managing Commodity Price Risk |
| title_short |
Market-Based Approaches to Managing Commodity Price Risk |
| title_full |
Market-Based Approaches to Managing Commodity Price Risk |
| title_fullStr |
Market-Based Approaches to Managing Commodity Price Risk |
| title_full_unstemmed |
Market-Based Approaches to Managing Commodity Price Risk |
| title_sort |
market-based approaches to managing commodity price risk |
| publisher |
Washington, DC |
| publishDate |
2017 |
| url |
http://documents.worldbank.org/curated/en/806381468333609379/Market-based-approaches-to-managing-commodity-price-risk http://hdl.handle.net/10986/27114 |
| _version_ |
1764463583354159104 |