Tuesday, December 28, 2010

Trading summary for 2010

2010 posed a number of challenges for the on-line marketing  and trading business.

Petroleum continued to be robust. It also attracted so-called “agents” who saw it as a way for making easy money while having little or no knowledge of the industry. Coupled with shysters and time wasters it proved a mine-field for genuine buyers and sellers alike. Another problem were re-sellers who decided commissions were not enough and tried to be buyer and seller at the same time.

The sugar harvest failed in early 2010, particularly in Pakistan. This caused the sugar price to spiral upwards, sometimes on a weekly basis. Brazil was able to supply sugar but many buyers were shocked at the prices being quoted. It is expected that in 2011 the price will begin to drop as a better harvest is expected around the world.

Wheat was another product which suffered from poor harvests. Russia actually banned the export of wheat to protect the local market. So not only was the price high, but supplies were also hard to find.

The wheat shortage created pressure on rice supplies. While rice was relatively plentiful the market didn’t miss the opportunity and prices rose to very high levels. Even Vietnam was asking prices far higher than normal as people chased a wheat alternative.

So that was 2010. Food shortages and high prices being par for the course... what will 2011 have in store for us. 

Contact Sutlet Group for more information on trends and activities in the global trading world, we specialise in facilitating agreements for petroleum, iron ore, wheat, rice, sugar, chemicals and coal. Learn more at our website.

Posted by Haydn Leseberg, Trading Manager, Sutlet Group
Edited by Stuart Blott, General Manager, Sutlet Group