In this issue of the GCARD, we are delighted to interview Sharon (Hyman) Weintraub, who is the Senior Vice President for Gas and Power Trading International at bp. Weintraub’s career spans commodity derivatives trading, risk management, and chief financial officer duties in positions across the globe, including in Chicago, Houston, London, and Singapore. She is also a member of the JPMCC’s prestigious Advisory Council.

In this issue’s GCARD interview, Weintraub describes her 30+ year career along with her view on the significant changes in the industry that have occurred during her career in the energy markets. She then discusses her current role at bp as well as some of the initiatives of the JPMCC’s Industry Advisory Council. The interview concludes with her advice for students and young professionals interested in a career in the commodities and/or energy markets.

Stable’s research covers the widespread issue of “basis” and “flat price” risk within the agricultural commodities sector. This article defines the term “basis” to describe the difference between a cash market price and the corresponding futures market price with “flat price” risk defined as the risk where the market operator is exposed to the full spot price of a commodity. The article drills into the level of coverage that liquid futures contracts offer in the agricultural commodity markets and highlights the shortcomings in the sector. Overall, Stable finds that only 16% of global agricultural commodity markets are covered by liquid futures markets. This provides a significant issue for risk management in the sector with widespread “basis” and “flat price” risk occurring. A case study on the organic corn market highlights the challenges of price risk management in a relatively new product within the market where no exchange-traded contract exists. This is in contrast with the conventional corn market, which has some of the most established futures contracts in the agricultural commodities sector. Another case study examines the recent price volatility in beef, which was caused by plant closures during the COVID-19 pandemic. The move in prices has disrupted the once tightly knit relationship between the Chicago Mercantile Exchange (CME) live cattle futures and the price of beef, leaving industry participants without a suitable hedging tool for their price exposure. Stable concludes that the market is in need of a modern, targeted solution for the age-old problem of “basis” and “flat price” risk within the agricultural commodities sector.