Since its first pilot launch in world market sugar, the PanXchange team has researched many different commodity markets, seeking to apply its aggregated market solution to those with the most inefficiencies, fragmentation and opacity. Staffed by a team of seasoned commodity traders, they understand the complexities of the sand market. There are varying qualities, multiple production and wellhead locations and insane logistical challenges. These challenges are not unique to sand.
More importantly, it’s no mystery how the sand market is evolving. When demand for a specific type of natural resource begins to grow, it’s only natural for both supplier and buyer to seek long term contracts (LTCs) to ensure steady deal flow. And as both supply and demand begin to grow, interim imbalances grow more disruptive. This is how a liquid cash (spot) market grows. This article contains a brief history of this evolution in iron ore, a trajectory that PanXchange thinks sand will follow. More recently and directly related to the shale revolution, is information on the maturing LNG market.
In 2017, it’s equally natural for these growing spot markets to migrate online. Technology has the ability to aggregate the pool of supply and demand, providing instant market access and price transparency. Most sand suppliers and buyers welcome this opportunity to increase operating efficiencies. But like any other commodity market, the stakeholders that provide much needed liquidity, delivery services and counterpart risk mitigation are less eager to embrace online marketplaces. Specifically, whether its a large trade house like Cargill or ADM in the grains market or a leading service company in the sand market, these large middlemen profit from the opacity and fragmentation in today’s current physical markets.
Yet a growing spot and forward market does not mean you should phase out all of your long-term contracts. A blended solution is ideal, and some of the benefits and challenges are described below.
Today London Stock Exchange welcomes UK’s Department for International Trade (DIT) and their USA FinTech Mission to the UK. Seven top financial technology firms from the United States were selected from a competitive pool by a panel of experts in US financial technology. The mission will highlight the innovative technologies emerging from across the US while also promoting the UK as a destination for FinTech investment.
Vice Consul Maria Deam of the British Consulate New York and Cammila Garcia of the British Consulate Chicago are leading the mission to network the delegates with industry experts and commercial contacts indispensable to international growth, as well as guiding the delegates on the steps needed to expand their growing businesses into the United Kingdom.
It was 3 a.m., and the warm Kenyan air smelled of jet fuel. Julie Lerner had just completed a 36-hour journey and stepped onto the runway at Jomo Kenyatta International Airport in Nairobi, Kenya. Her first time in Africa. A few days before her trip, a massive fire had erupted in the airport’s main terminal. The fire made headlines worldwide because the day it broke out happened to mark the 15th anniversary of al-Qaeda attacks on U.S. embassies in Kenya and Tanzania, and officials were concerned the incident might be related. Lerner heard the news from her home in Denver; but when the time came, she boarded the flight to Nairobi anyway. Now, in the middle of the night, as she approached the makeshift customs tent that had been set up next to the ashes of the airport, she thought to herself, what the fuck am I doing here?
Denver, CO and Nixa, MO. October 10, 2016. PanXchange, Inc, an electronic negotiation and trading platform for physical commodities, and Bulkloads, LLC, a web-based platform that connects commodity trucking supply with traders seeking transport for bulk raw grains, announced a strategic alliance today.
Both companies are using the power of technology to provide commodity producers, processors and traders with more operating efficiency and new profit opportunities via computers and smart phones. The companies will begin with joint marketing efforts and facilitated access to each other’s platforms. Longer term, the companies look forward to offering aggregated real-time data that gives their members instant decision-making capabilities in fast moving markets.
PanXchange founder and CEO Julie Lerner states, “I’m excited about the mutual growth opportunities with Bulkloads. Our platform offers traders instant market access and price discovery. By partnering withBulkloads, they’ll have even more information with access to available trucking routes in real time. This opens up a world of profit opportunities with more liquidity and more optionality. At a minimum, this could reduce the legging risk between offers at origins and bids at destinations.”
PanXchange has been selected to the FIA Innovators Pavilion, for their 32nd annual Futures and Options Expo, from October 18th through the 20th in Chicago.
PanXchange is a negotiation and trading platform for physical commodities. Whereas derivative traders demand speed and multiple market linkages, cash market traders need order optionality, anonymity, and counterpart management without burdensome clearing fees. Strong physical markets lead to even stronger futures markets. We’re live in the US & abroad in agriculture and will be expanding into energy & metals.
Denver, Colorado. June 28, 2016 U.S. Democratic presidential candidate Hillary Clinton visited with the team from PanXchange, Inc., a web-based negotiation and trading software for physical commodity markets a day after the company launches its first US trading market.
PanXchange’ Founder and CEO, Julie Lerner, explained that the meeting was more substantive than she anticipated. “I was expecting a quick meet and greet, but was pleasantly surprised at how pointed her questions were. It was clear that she was familiar with the work we’re doing.” She continues, “She asked about the inroads we’ve been making in East African grain and beans markets and our launch in US Feed Ingredients. We then showed her the live trading screens and discussed our plans for growth.” From there, they discussed the benefits of the transparency that the platform yields in terms of food security and potential market oversight.
PanXchange (PX), a web-based software for the negotiation and trade of physical commodities opened its pilot launch to select US feed ingredient traders today. Fifteen companies are already members for a total of 35 registered traders. Two bids and offers were negotiated and matched within the first hour of trading.
The purpose of the program is to fine-tune the features to best meet the needs of feed ingredient traders as well as to provide market participants with a window to become familiar with the platform before bids and offers are live and legally binding if matched.
Julie Lerner, PanXchange’s Founder and CEO, explains, “We are excited to launch this platform with over a dozen of the country’s most active traders, producers and feed lots. The reception we’ve experienced in these early days has confirmed industry interest in PX’s ability to provide instant price discovery and market access across the country and beyond.”
PanXchange (PX), web-based software for the negotiation and trade of physical commodities, opened June 27 its pilot launch to select U.S. feed ingredient traders.
The purpose of the program is that of fine-tuning the features to best meet the needs of feed ingredient traders as well as to provide market participants with a window to become familiar with the platform before bids and offers are live and legally binding, if matched.
Julie Lerner, PX founder and chief executive officer, said, “We are excited to launch this platform with over a dozen of the country’s most active traders, producers and feedlots. The reception we’ve experienced in these early days has confirmed industry interest in PX’s ability to provide instant price discovery and market access across the country and beyond.”
NAIROBI, KE -- 03/09/16 -- PXAfrica Ltd, a subsidiary of PanXchange, Inc., reached two new milestones this week, the first of which is a live offer for world market wheat delivered to Dar es Salaam. This is the first market order that ties the regional East African market to the world market. Julie Lerner, CEO and Founder of PanXchange explains, "I had always envisioned that a successful regional market would cross over into the international market, but I didn't think it would happen so quickly. We are looking forward to serving a larger clientele that seeks to export wheat to Dar es Salaam and Mombasa." She continues, "We also look forward to concluding our first export of beans from the region in the first half of 2016, most likely from Mombasa to an Indian port."
We have grave concerns in today’s world agricultural commodity markets, and I’m not speaking of trade houses’ shrinking profit margins. There’s fear of a global food shortage and fear that we cannot succeed in the war on poverty. In the West we have constant reminders of how the lack of traceability yields food security threats and in Asia of how it leads to deforestation. And where there is fear, there are hasty and chaotic attempts to address the problems. We are all eager to create double or triple bottom line success stories, but as shrewd business people, we need to slow it down and take a more pragmatic approach. The complexities involved in establishing secure and sustainable food supplies require patience and granular focus, with success measured in small increments. Once we get out of the mad scramble to solve the problems, we’ll begin to see the obstacles that can and must be cleared before we can reach impact at scale.