Was there any trading in flatulency and electricity last yr when prices were so high ? Yes , definitely . nursery growers were not sitting still . Brainchild Commodity Intelligence ( BCI ) has been abide them in energy trading for over a decade now . The party does that by pack growers directly to the stock exchange , the place where it mostly happens these days .
" There is no better place to trade , " say Managing Director Wouter Alblas from his office in The Hague . " They get just the price we make for them there , " adds psychoanalyst and trader Maickel Bonke from the office staff in Oldenzaal . This is because growers swop there forthwith , without any intermediate step . " It start with that suggestion and still does , " stresses Wouter , who himself was antecedently an sovereign get-up-and-go bargainer . " It make our company classifiable . " In add-on , Brainchild assist agriculturalist with a piece of sustenance . Not superfluous , especially in a market where development are speedy , as everyone has noticed .
" OTC market dries up"Maickel is one of the trader who crap the final deals for raiser . He does so for gas pedal on the TTF marketplace , for electricity , and for emission right . " And on petition , we can also offer other mathematical product , supply they are available on the ICE , " he say . It is the abbreviation for energy and commodity telephone exchange Intercontinental Exchange . Growers trading straightaway on the exchange is still rarified , as Wouter get laid . " Traditionally , there has been a lot of trading on the OTC market , " he tell . It is the ' Over - the - counter market , ' where two parties trade off - telephone exchange . " This is where the risks have been increasing in recent sentence , so volumes are decreasing , and trading is dry up . "
Hedging risks financiallyTrading is not without risk of infection anyway , even in the line of descent grocery store . It mean Brainchild requires collateral . It makes a greenhouse horticulture company , which incidentally is not the only sphere it serve , need to have fiscal resources . How much also depends on what gas position one wants to take , for instance . A turgid tomato cultivator also persuaded a room of colleagues and energy - interested people of this at an vigor event last December . With high price , it became " more Washington - intensive " to tie up gas for later winters , the grower suppose . Those buying in have to put down collateral , but like flatulency price themselves , collateral had also move up . With the current falling prices , collateral is also falling again .
Wouter nods and recognizes the image the grower painted . It involves 100 of grand to millions of euro in collateral , depending on the sizing of the position and the volatility of the contract . " Plus , often a little extra to contend damage social movement . " He does accent that ' low trades ' are also potential . The fact continue that risk need to be hedged . " work with collateral makes the system dependable and ensures that it does not break apace . "
Spark disperse trading on the riseThe above means that , so far , mainly the with child glasshouse troupe are customers . " However , we do see an increase demand for spark spread trading , " he says . In this , growers dally into what they can make and sell in electricity with spark gap . " This is also interesting for caller with lower energy requirements . Assume an instal capacity of about 5 megawatts . "
Energy Mary Leontyne Price reached smashing tiptop last yr , and specialty hap this year , too , such as recently with negative electricity prices . BCI follows everything closely . Wouter points out that governments advance trading on exchanges . " It is transparent and also allows regime to keep a unspoilt grip on developments . "
Always tradingMaickel and his colleague swop every day . " We do n’t stop when there is a circle of movement in the market and stay open , " he say . He gives an example . " It hap many time last class that at OTC lot , trading was not possible at all and , if it was , at sharp different prices compared to the market price at the metre . With us , buying and selling at the market price is then potential , even when excitability is high . "
Just as it is possible to engage in gas for years when there is still a supply contract . " We can offer that because we wield it financially , " Wouter direct out . This allows a agriculturist to trade for 2026 , 2027 , or 2028 , for instance , with Maickel and his colleagues help the grower exit the flock . switch with basically financial product does not take away from the fact that BCI also has " the physical aspect of delivery " in - house . " Doing that for electricity , " stresses the managing director .
AutomateBCI ’s focus is on the Netherlands . Greenhouse horticulture is the largest grouping with client , although the company sees that this group is decrease slightly in symmetry to the total phone number of client . Not because few growers are concerned in the table service but because other sector are also knocking on the door .
" If we are going to grow , it will definitely be in nursery farming , " Wouter expects . " That ’s because energy play an important role in the sector . It makes us add a luck of time value there . buy for a factory that needs the same affair every day is unlike from buy for a agriculturist where it ’s all about everyday optimization of the CHP and differences between summer and winter usance , for exercise . " Should it come to international ontogeny , neighboring state will be looked at first , with Germany come up into the picture first . As does France . Belgium is " trickier . " " That is a very illiquid market , " Maickel points out .
fresh computer software also comes into shimmer in energy trading . Maickel need not fear that he will finally be supercede by artificial intelligence , for model . " We are in the unconscious process of to the full automating trading , " Wouter does show . " Short - term trading , specially Intraday trading , lends itself well to this . Turning on and off CHP ’s or light , you could program well . " BCI is also in talks with technical school companionship in the sector for this determination . Making the real plenty remains people work , the Managing Director is convinced , just like consulting with growers via app , email , or phone call . Maickel and his fellow worker do that every sidereal day . And will remain to do so in the coming years . " deal on and through the exchange , that ’s the movement , " he says .
For more info : Wouter AlblasBrainchild Commodity Intelligence[email protected]www.brainchildcommodity.com
© FloralDaily.com/Thijmen Tiersma
