Agricultural Commodity Exchanges in Latin America and the Caribbean

Arias, Diego; Ferreira Lamas, Alfredo; Kpaka, Musa

Agricultural Commodity Exchanges in Latin America and the Caribbean

Autores

Arias, Diego

Ferreira Lamas, Alfredo

Kpaka, Musa

Editor

World Bank, Washington, DC

Descripción

A commodity exchange is a goods and financial market where different groups of participants trade commodities and commodity-linked contracts, with the underlying objective of transferring exposure to commodity price risks (UNCTAD). A commodity exchange that only trades goods is known as a physical or 'cash or forward' market, while the exchange that trades price derivatives is known as financial or 'futures and options' market (see Glossary for detailed definitions). Some agriculture commodity exchanges have both. Agricultural commodity exchanges date as far back as the early 18th century. Modern exchanges, notably the Chicago Board of Trade (CBOT) was created in 1848, recently merged with the Chicago Mercantile Exchange (CME), is one the oldest and most successful futures exchanges worldwide. Today several agricultural commodity exchanges exist throughout the Latin America and Caribbean (LAC) region. They facilitate trade and financial products in countries whose economies have a relatively large share of primary and secondary agricultural activities or either account for auctions on substantial food imports. This report looks at the current development of agricultural commodity exchanges in the LAC region and offers public policy recommendations that can foster the development of such exchange markets.

Palabras clave

AGRICULTURAL ACTIVITIES, AGRICULTURAL COMMODITIES, AGRICULTURAL COMMODITY, AGRICULTURAL POLICIES, AGRICULTURAL POLICY, AGRICULTURAL PRODUCTION, AGRICULTURE, ARBITRATION, AUCTIONS, BANANAS, BASIS RISK, BEEF, BENEFICIARIES, BROKERAGE, BROKERAGE FIRMS, BROKERAGE HOUSES, BROKERS, BUSINESS ENVIRONMENT, CAPITAL CONTROLS, CAPITAL REQUIREMENTS, CASH FLOW, CASH MARKET, CASH MARKETS, CASH TRANSFER, CEREALS, CLEARING HOUSE, COCOA, COMMERCE, COMMODITIES EXCHANGES, COMMODITY BROKERAGE, COMMODITY CONTRACTS, COMMODITY EXCHANGE, COMMODITY EXCHANGES, COMMODITY FUTURES, COMMODITY MARKETS, COMMODITY OPTIONS, COMMODITY PRICE, COMMODITY SECTOR, COMMODITY TRADE, COMPETITIVENESS, CORN, COUNTRY TO COUNTRY, CREDIT EXPOSURE, CREDIT LINES, CREDIT RISK, DAIRY, DERIVATIVE, DEVELOPING COUNTRIES, DOMESTIC MARKET, DOMESTIC MARKETS, EGGS, ENABLING ENVIRONMENT, ENVIRONMENTAL SUSTAINABILITY, EXCHANGE MARKETS, EXPORTERS, FINANCIAL CRISIS, FINANCIAL DERIVATIVE, FINANCIAL EXCHANGES, FINANCIAL EXPOSURE, FINANCIAL INSTITUTIONS, FINANCIAL INSTRUMENTS, FINANCIAL INTERMEDIARIES, FINANCIAL MANAGEMENT, FINANCIAL MARKET, FINANCIAL PRODUCTS, FINANCIAL SECTOR, FINANCIAL SERVICE, FINANCIAL SERVICES, FOOD AID, FOOD IMPORTS, FOOD MARKETS, FOOD POLICY, FOOD PRICE, FOOD PRICES, FOOD PRODUCTION, FOOD PRODUCTS, FOOD RESERVES, FOODS, FOREIGN GOVERNMENTS, FORWARD CONTRACT, FORWARD CONTRACTS, FORWARD MARKET, FRUIT, FRUITS, FUND MANAGERS, FUTURE PRICE, FUTURE PRICES, FUTURES, FUTURES CONTRACT, FUTURES CONTRACTS, FUTURES EXCHANGE, FUTURES EXCHANGES, FUTURES MARKETS, GOVERNMENT GUARANTEE, GOVERNMENT POLICIES, GOVERNMENT SUPPORT, GRAINS, HEDGING, HOLDINGS, INCOME, INSTITUTIONAL INVESTORS, INSURANCE, INTERNATIONAL BANKS, INTERNATIONAL INVESTORS, INTERNATIONAL LAWS, INTERNATIONAL MARKET, INTERNATIONAL MARKETS, INTERNATIONAL STANDARD, INTERNATIONAL TRADE, LEGAL FRAMEWORKS, LENDING PORTFOLIOS, LIBERALIZATION OF TRADE, LIQUID MARKET, LOCAL EXCHANGE, MAIZE, MARKET ACCESS, MARKET FAILURES, MARKET INSTRUMENTS, MARKET INTERMEDIARIES, MARKET LIQUIDITY, MARKET MECHANISMS, MARKET PARTICIPANTS, MARKET PRICE, MARKET SIZE, MARKETING, MATURITY, MATURITY PERIOD, MEAL, MEATS, MERCHANDISE, MERCHANDISE TRADE, MILLS, MONEY MANAGERS, NEW MARKET, NEW MARKETS, OATS, OIL PRICES, OPTION CONTRACTS, ORANGE, ORANGE JUICE, PALM OIL, PAYMENT SYSTEM, PEANUTS, PENSION, PORK, PORTFOLIO, POTATO, POTATOES, PRICE CONTROLS, PRICE DERIVATIVES, PRICE FORMATION, PRICE INCREASES, PRICE INDICES, PRICE MOVEMENTS, PRICE RISK, PRICE RISKS, PRICE SUBSIDY, PRICE SUPPORT, PRICE VOLATILITY, PRIVATIZATION, PRODUCT QUALITY, PUBLIC POLICIES, PUBLIC POLICY, PUBLIC-PRIVATE PARTNERSHIPS, PURCHASING, REAL ESTATE, RED BEANS, REGULATORY FRAMEWORK, REPOS, RESERVES, RETURN, RISK MANAGEMENT, RURAL INFRASTRUCTURE, SECURITIES, SHAREHOLDERS, SHORT-TERM FINANCE, SOYBEAN, SOYBEANS, SPREAD, STANDARD CONTRACTS, STOCK EXCHANGE, SUGAR, SUGAR CANE, SUPERMARKET, SUPERMARKETS, SUPPLIERS, SUSTAINABLE DEVELOPMENT, SWAPS, TAX, TAX BENEFITS, TAX INCENTIVES, TRADE FINANCING, TRADE LIBERALIZATION, TRADES, TRADING, TRADING SESSIONS, TRANSACTION, TRANSACTION COST, TRANSACTION COSTS, TRANSACTIONS COSTS, TRANSPARENCY, TRUST FUND, VEAL, VEGETABLES, WAREHOUSE, WAREHOUSE RECEIPTS, WHEAT, WHOLESALERS, WINE