commodity finance

The article discusses commodity finance, which underpins the production, transportation, and storage of global commodities. It highlights risks in the system, such as oil tankers stuck in the Strait of Hormuz, and explores how risk is priced, warehouse quality impacts financing, and differences between hedgable and non-hedgable commodities like oil versus cashews.

Select Harvests Ltd. processes cashews at a facility in Melbourne, Australia, and is set to report half-year results on Feb. 25. The article includes a photograph by Carla Gottgens.

The podcast 'Odd Lots' discusses the financial mechanisms behind commodity supply chains, highlighting how commodity finance supports production, transportation, and storage of global goods. It raises questions about funding for oil tankers and risks like being stuck in the Strait of Hormuz.