00:00You mentioned your colleague who's on the Peanut Tree Nut Association.
00:04Yes.
00:04From the perspective of Brown Brothers Harriman, how does commodity banking or finance work differently for some of these more
00:11niche commodities where the client does not have the ability to go short to contrast the physical?
00:18So you're always in non-hedgeable commodities, you're also measuring price risk.
00:23Yeah.
00:23But typically in something like cashews, as an example, cashew supply chain is super interesting, by the way.
00:30It starts typically in West Africa.
00:32It comes in something called raw seed.
00:35It then gets shipped to Southeast Asia, Vietnam, India, and they extract this kernel.
00:42And the kernel is what you eat.
00:44And there's actually toxic liquid in between the shell and the kernel.
00:48Long story, but it's sort of a fun supply chain.
00:50And then it gets exported in edible form, typically from places like Vietnam.
00:55And so it's a very long supply chain.
00:57And typically what you're relying on there, because the price does move a lot, is a forward contract.
01:03And that forward contract may not be financially settled as it is in the futures market.
01:08It may be, I've sold this all to XYZ buyer at ABC price.
01:15Some maker of like sweets or something like that.
01:17Think about if you like cashews, if you go to your local grocery store, probably whoever
01:23sits in between your local grocery store and our client that is packaging and salting and
01:28all those things.
01:29So I was looking up the toxic liquid that comes from cashews and it's urish oil.
01:34I'm not sure I'm pronouncing that right, but the stuff that comes from poison ivy, which
01:37I am currently suffering from.
01:40So this is, yeah, this is interesting to me.
01:42This is interesting to me.
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