COMMODITY MARKETS

The course aims to provide tools for the description and analysis of the commodity markets in the global economy, the application of the acquired knowledge and mastering the mastery of the main issues arising from the commodities (soft and hard) market.
Particular attention is given to the examination of supply and demand; analysis of price formation and volatility (distinguishing mainly between short and long-term causes); to public intervention policies and the market systems, also in consideration of the evolution of globalization processes and of international agreements (multilateral, regional and on raw materials).
The course, as homework, also focuses on specific case studies (such as cotton, cereals, rice) to apply acquired knowledge, interpreting functioning, policies and free trade agreements.

1. Knowledge and understanding
1.1 Understanding and identifying the various market systems (production and distribution) of commodities
1.2 Understanding how public interventions in the commodities market can influence prices and quantities exchanged
1.3 Understanding the role of commodity exchanges (and of different contracts) and identifying specific commodity exchanges
1.4 Understanding and identifying the effects of free trade agreements (bilateral and multilateral) on price, quantity and trade direction.

2. Applying and analyzing
2.1 Identifying the determinants of supply and demand to interpret any market trends
2.2 Analyzing import and export flows in light of public policies adopted and signed free trade agreements
2.3 Identifying any distorting effects of policies adopted in developed and developing countries in achieving food security

3. Evaluating
3.1 Interpreting the functioning of global commodity markets in the light of macroeconomic, geopolitical, environmental and social variables
3.2 Reflecting on the policies adopted and adoptable in relation to the existing disparity in terms of economic development between exporting countries and importing countries
3.3 Reflecting on free trade agreements in relation to the impact on international trade in commodities and their potential distortion

Having passed the basic Economics exams (micro and macro). In particular, it is necessary to master demand and supply models and market systems

1. Commodities in the global context: supply and demand, forms of market for production and distribution, price formation and volatility
2. Public policies of prices and markets: principles and effects on the international market in terms of prices, externalities and exchanges
3. Comparisons between developed and developing countries in commodity trade
4. The main international commodity exchanges and forms of bargaining as price formation instruments
5. WTO, regional free trade agreements and commodity agreements: impacts on international commodity trade and their potential distortion
6. Functioning of the commodities market through the analysis of case studies

SUGGESTED LECTURES

The World Bank (October 2019 Commodity Markets Outlook avaiable at https://www.worldbank.org/en/research/commodity-markets
BAIN C. (2013) Guide to Commodities, Producers, players and prices, markets, consumers and trends, The Economist

MANDATORI TEACHING MATERIALS
available on the Moodle page of the course (https://moodle.unive.it/user/index.php?roleid=0&sifirst=&silast=&id=844 ) and must to be consulted

The exam is written and is based on the assessment of the expected learning outcomes. The exam, which lasts about 60 minutes, is usually divided into three questions, two of which are theoretical and one on the analysis of a case study, taken from a short article. The first two are mainly targeted at the measurement of the ability to apply knowledge and understanding; the analysis of the case study at the ability to judge.
The minimum pass score on the exam is 18 points.
A list of theoretical questions and analysis of some cases are available on the moodle platform.
Books, notes or electronic media are not allowed during the exam

The course mainly follows a conventional teaching approach combined with e-learning activities. The conventional approach essentially aims to provide students with the tools to describe and analyze commodity markets and to apply acquired knowledge and skills. The e-learning activities are directed, above all, but not only, to verify the degree of judgment acquired.

English

Students are strongly encouraged to register for the e-learning platform (moodle) of the course https://moodle.unive.it/course/view.php?id=844 and to contact the teacher in case of doubts

written

This subject deals with topics related to the macro-area "Poverty and inequalities" and contributes to the achievement of one or more goals of U. N. Agenda for Sustainable Development