Monthly Newsletter

10 April 2018

SGX ends Q1 CY2018 with over 3.6 million contracts for FX futures; 89% y-o-y growth

Access our latest video to gain the energy market insights you need in 3 minutes or less. This latest video covers:

• Managing risk with liquid intercommodity options
• Record volume and open interest in WTI-Brent spread options
• Price volatility in the WTI (CL) vs. Brent (BZ) futures spread

The share of Asian activity in the world’s major energy commodity benchmarks continues to grow as the region cements its position as the key demand hub for global energy trade.

Interest rate futures charts continue to build support following the base set in the aftermath of the early February volatility squeeze. As noted last month, long term support in front-month futures is down at 142’20 and 141’10 (the market hit a low of 142’30 since this newsletter was posted last on 03/21). I indicated targets at 145, 146 and 148. The 148 level is still in play.

By Filippo Lecchini

Chocolate? Yes, please..

One of the untold stories for 2018 so far is the rally in Cocoa prices. At the end of March prices were over 30% higher from the beginning of the year. Granted, this followed a multi years low in December but the volatility in this commodity remains quite remarkable.

By: Lynette Lim

Dear Friends, 

On a recent trip to Singapore for my brother’s wedding, we decided to stop over in Cambodia to visit our Phillip operations and explore the country. It was Cameron’s first visit to Cambodia and my second. I had travelled to Cambodia-  Phnom Penh as well as Siem Reap in 2000 on a low budget, backpacking trip with three other friends to visit Vietnam, Laos and Cambodia.  I was curious to see the changes and upward progress of the country. 

And oh my, how the economy has progressed!

亲爱的朋友们，

        “目标”一书是我在芝加哥布斯商学院在读时最喜爱的商科类书籍之一，而且我现在还是会将其作为参考。https://en.wikipedia.org/wiki/The_Goal_(novel) 。我非常推荐阅读这本书。虽然本书是三十年前出版的，但它仍然是我的最爱之一。因为它阐述了非常有价值的商业经验，而且它读起来就像在读一本小说。目标讲述的是有关限制理论的，它是通过书中的人物赫比来阐述的。赫比是童子军团中行动最慢的一个。在远足过程中，童子军团必须成一列纵队前进并保持队形紧凑。他们的目标是在天黑之前到达露营地。谁是最快的童子军并不重要，因为远足的移动速度100%取决于赫比的移动速度。可以说赫比就是童子军的瓶颈或者也可以叫做限制。因此，一个重要的需要解决的问题便是怎样让赫比行动的快一些。让其他人行动的更快并不能使赫比行动的更快，所以你必须将精力集中在赫比身上。就像这样一个流行的引言说的一样“一条锁链的强度取决于它最脆弱的那一环”。

BSE SENSEX

By: Russell Rhoads

Back in 2008, as the financial world was falling apart, the business media loved to quote Warren Buffett’s comment about derivatives from Berkshire Hathaway’s 2002 annual letter. However, that line has been taken completely out of context to fit the needs of market commentators or derivative critics. The specific line appears below –

“In our view, however, derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal”