Commodities

Entrade is your commodity trade management solution, whatever you trade, wherever you trade.  Its universal deal manager and risk engine ensures that all of your trading activities can be well managed within one system, with one architecture, on one trade management platform.  Entrade also provides industry- and market segment-specific logistics management forms and reports, which take into account the nuances of the specific logistical requirements of each commodity.

int-crude

Crude Cargos

Traders like volatility. And, oil markets are increasingly volatile. There are so many details to track and manage. That’s why you need Entrade.

It is a platform built to the specific nuances of oil markets. Wherever you trade crude, Entrade is here to help your business manage its trading activities, track inventory levels and value, and account for all primary and secondary logistical costs.

Entrade is an integrated CTRM solution, which means that all areas of your trading operation, in all office locations you staff, are linked together, sharing information. Whether its credit management, trade finance, operations, or accounting, every part of your organization has timely access to the information it needs to perform its function.

Crude-oil-picture

 

Crude Leases

Oil lease management is complicated by the relationship between crude pricing and lease data. This relationship is implemented correctly within Entrade so that crude deal pricing can be recorded by deal, but adjusted for each lease using deducts and adjustments for quality. Entrade also records run tickets, which are aggregated together to actualize monthly lease production. All crude movements, whether by rail, barge, or pipeline, can be scheduled and tracked within Entrade. All cost data follows crude movements through all inventory stops, both storage and in-transit.

Oil-Refinery

 

Refined Oil Products

Marketing refined products requires lots of market intelligence and inventory management in order to profit best and plan properly.  Entrade is here to help your business manage its trades, track inventory levels and value, and account for all primary and secondary logistical costs.

Entrade captures and manages risk exposure for all types of refined products, including both financial and physical deal types. It schedules all forms of transport and includes the various costs associated with transporting and storing oil products as part of the overall trading profitability reports. 

Entrade is an integrated CTRM solution, which means that all areas of your trading operation, in all office locations you staff, are linked together, sharing information.  Whether its credit management, trade finance, operations, or accounting, every part of your operation has timely access to the information it needs to perform its function.

LNG112

 

LNG

Recent emphasis on reducing greenhouse gas emissions and improving air quality has made natural gas the fuel of choice for electricity generation.  But, many countries lack this natural resource within their borders; or, they can’t access the natural resource; or, if they can access it, they can’t get it to population centers.  Major emerging economies, like China and India, therefore look to LNG as a means to enjoy the benefits of this clean-burning fuel. 

But, its complex life cycle involves many stages:  production, transportation in pipelines, liquefaction, storage, transportation by vessel, back to storage, and eventually regasification and consumption.  Fortunately, Entrade has out-of-box forms, features, and reports to track primary and secondary costs of each stage in LNG’s life cycle all in one uniform commodity trading and logistics management system.  There isn’t another system like Entrade which can handle the logistical aspects of both natural gas and bulk shipped commodities like LNG.  Only Entrade.

LNG deal pricing formulas can be complicated and difficult to set up in most systems, especially Excel spreadsheets. Entrade makes deal entry easy because of its pre­configured formula templates and pricing engine. Formulas may reference any one of the many commodity indexes available, including Brent and WTI, Gas Daily and Inside FERC, TTF, NBP, and JKM, to name just a few.

Entrade’s curve engine can be used to construct and bootstrap very complex LNG term pricing curves. Deals may be marked to intent within Entrade, too. A second formula may be entered on each trade to indicate how value a trade based on its destination and the various flexibility and options in the delivery schedule.

Entrade can evaluate LNG contracts with embedded FX and Interest Rate components. Each component is recognized in order to better manage FX and Interest Rate risks. Entrade’s LNG scheduling module manages flexible delivery terms, such as Take-­Or-­Pay, Cargo­-By-­Cargo, Diversion Flexibility Right, Onward and Downward Adjustment Flexibility Rights. It manages boil­-off and heel, too; and, integrally reflects the boil­-off and heel in risk valuation.

 

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NGLs

NGLs, while similar in nature to refined products, trade a bit differently.  Separation plants knock these high-value products out of wells producing natural gas in the form of a raw mix.  Valuing raw mix is problematic because each of the purity components in the raw mix has its own independent market value.  And, each well may produce its own unique composition of raw mix.  How can overall market value be calculated? 

It’s easy with Entrade.  Entrade maintains each well’s unique raw mix proportion.  It decomposes and values inherent market risk without disaggregating estimated and actual production volumes, which are still traded, scheduled, and settled in aggregate.  Logistics is a snap in Entrade, which captures all primary and secondary fees and costs associated with movements. 

And, Entrade manages inventories well, whether in-transit or stationary.  Fractionation plants can even be modeled within Entrade so that purity production can be estimated to forecast sales revenues.

coal

 

Coal

With coal prices historically lower and more stable than oil and gas, coal is likely to remain the most affordable fuel for power generation in many developing and industrialized countries for decades.  And politics is moving back in the direction of coal, too, like a swinging pendulum. 

Because of low volatility in prices, managing costs is most important.  To control costs, major coal users need to focus on supply chain and inventory efficiency as well as managing quality specification from contract to delivery.  And, Entrade can help you manage all of these important details that make the bottom line much better.

natural-gas

 

Natural Gas

The abundance of natural gas in North America, and its clean-burning, climate-friendly nature, has made natural gas a fuel of choice for electricity generation, closing in on coal as a baseload fuel for electricity production. At the same time, the location of new-found natural gas basins is completely changing the dynamics of a marketplace accustomed to a single direction flows of natural gas from production basins in the mid-continental and off shore Gulf of Mexico to northeastern places of consumption. The complexity of natural gas trading has never been greater.  Nor the risks. 

That’s why there is Entrade.  It has functions and features to help you manage trading and logistics from producing gas wells, through processing and NGL production, downstream to points of consumption.  And, Entrade has many features to help natural gas retailers aggregate and manage forecasted demand behind traditional city-gates.  You will be up-and-running Entrade faster than you can imagine.  Entrade comes ready-to-install, and out-of-box, with many of the features you have been looking for.  Entrade is a great choice.

Here are some features from the most comprehensive Natural Gas application today:

  • Captures counterparty data and Agreement terms
  • Stores all sorts of Physical and Financial types of deals
  • Calculates position risk and exposure to price movement
  • Evaluates Counterparty Credit Risk
  • Calculates physical and financial deal settlements
  • Generates counterparty invoices
  • Tracks costs associated with pipeline transport and storage
  • Calculates profit/loss drill-down, pivot reports

And, it has extended functions to support retail operations, too.

  • Aggregates retail load
  • Allocates demand to supply pools
  • Applies various load shaping factors, such as attrition and fuel loss
  • Allocates physical supply to markets to close monthly business
power

 

Electricity

Customer choice programs are now available in many cities and states, allowing consumers to select electricity providers and rate programs from among many offered in a growing free marketplace.   It is a very competitive world we live in.  Profit margins are squeezed.  But, managing all the details of electricity trading can be over-whelming.  Spreadsheets certainly are not up to the job.  Not when balancing trading positions hourly is essential. 

Entrade does the job without breaking sweat.  It has the horsepower to crunch through the mounds of hourly, shifting time zones and accounting for daily light savings.  You will never need to worry about getting invoices generated correctly and on-time.  Entrade is your system of choice.

Here are some features from this very comprehensive solution:

  • Captures both physical and financial deal types such as Bilateral Contracts and Power Swaps
  • Calculates both hourly and on/off peak risk valuations and position summaries
  • Tracks Credit Exposure
  • Handles both standard products and hourly load-shaped deals
  • Generates monthly settlement statements

And, it has extended functions to support retail operations, too:

  • Aggregates retail load
  • Applies load shaping factors such as attrition and line loss
  • Shows netted hourly supply and demand positions
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Retail for NG & Power

Entrade’s extended Retail function for NG and Electricity aggregates forecasted individual customer demand usage into wholesale-like trades for each utility, zone, customer type, price type, risk element, forward month, and so forth. These wholesale-like trades can then appear in Entrade’s wholesale position and valuation reports. Entrade has a forecasting engine, too, as well as an offer price management system.

  • Forecast customer demand load
  • Store customer load profiles
  • Aggregate city-gate load
  • Apply load shaping factors such as attrition and stick rates, commodity loss rates, etc
  • Allocate city-gate load to supply pools
  • Decompose load into risk elements
  • Forecast for sales campaigns
  • Track retail broker commissions and payments
  • Forecast renewing customers
  • Price new customer contracts
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Metals & Concentrates

Global markets are moving away from fixed price, long-term contracts and towards short-term spot- or index-based contracts. Emerging exchanges with quoted prices and indices for metals and steel are making it happen.  Prices are more volatile.  Managing costs, including secondary costs, is vital for a profitable business operation. 

And, that is what Entrade does best.  Let Entrade help your company manage its trading operations in metals.  Entrade come out-of-box with reference data ready-to-go for Non-ferrous Metals like Aluminum, Copper, Tin, Nickel, Lead & Zinc, Steel, Scrap and Recycled Materials, and Precious Metals like Gold, Silver, Platinum, and Palladium.

freight

 

Freight & Cargo Trading

Shipping lanes remain the great conduits of commerce. 90 per cent of the world’s traded goods are transported by sea.  Oil products and minerals are the most transported commodities. 

But, getting cargo from point A to point B is far from straightforward.  There are many risk factors to consider when transporting cargo:  Shipping lane congestion, port availability, Piracy, bunker fuel requirements, etc.  And, there is financial exposure to freight rate volatility and counterparty credit risk. 

Entrade can help with both.  Its risk architecture is very robust.  And, freight risk captured by Entrade can be incorporated into your company’s overall risk position.

freight
freight

 

Softs

So many things to worry about: optimum trading performance, minimizing business risk, reducing transport and inventory costs, supply disruptions, unplanned market events, etc. Now, add fluctuating market prices, ongoing credit issues with banks, and changing accounting regulations, and the jobs of marketers, risk managers, and operations professionals becomes nearly impossible.  

A proliferation of contract types means companies that purchase, store, ship and trade agricultural commodities face increased complexity in managing inventory and forward commitment of agricultural commodities. At the same time, price volatility continues, and there's more risk of supplier default.

You may be using spreadsheets to perform marked-to-market (MTM) and to hedge physical positions.  But, you know there must be an easier way to manage all the detail.  Perhaps, off-the-shelf software.  But, the costs and risks associated with implementing traditional software can be prohibitive to small and medium size companies. 

But, now, there is another choice, Entrade.  It is cost-effective and easy to implement.  In fact, it comes out-of-box with many of the features you expect, features you need.  Here are some of the commodities easily managed within Entrade:

  • Grains: Wheat, Soybeans, Corn, Beans, Rice, Oats
  • Softs: Coffee, Cocoa, Cotton, Sugar, Orange Juice