Binkabi Commodity Monday #2 | View online in your own language

The Rise of TradeTech

Commodity Monday, September 17

Trade Tech — A New Age for Trade and Supply Chain Finance

The World Economic Forum (WEF) has written a white paper on the impact of Fourth Industrial Revolution technologies on international trade flows and supply chains. It correctly points out that small to medium enterprises (SMEs) in emerging markets struggle to compete for market share of international trade. Outdated processes, which are largely dependent on paper, pose further obstacles to SMEs.

The WEF white paper explores how distributed ledger technology, internet of things (IoT) and artificial intelligence can transform international trade, making it more equitable for SMEs.

It’s an excellent reference source. Keep it bookmarked.

Mastercard unites nine rival B2B networks to launch global trade platform

Mastercard is bringing together nine business-to-business networks and procure-to-pay solution providers to roll out a new global trade platform, which will help firms manage their supply chains, payments, compliance and working capital.

Mastercard Track, which is set to go live in early 2019, will also be “blockchain ready”. The first capabilities will be around compliance and payment management, with the intention to expand so that banks can offer financing products to firms that use the platform.

Zimbabwe could reexamine the use of cryptocurrency

Less than a fortnight since his appointment as Zimbabwe’s finance minister, the new treasury boss is potentially placing himself on a collision path with the country’s central bank with his pro-cryptocurrency stance.

According to Mthuli Ncube, Zimbabwe’s newly minted Minister of Finance, cryptocurrencies could assist the southern Africa country to solve the cash crunch that has been ongoing for the last two years. Towards the realization of this, Ncube has promised to nudge the Reserve Bank of Zimbabwe(RBZ) into establishing a cryptocurrency division that will be tasked with assisting the country’s apex bank to develop a better understanding of digital assets, IT Web Africa reported.

The cryptocurrency naysayers often overlook that cryptocurrencies are attractive alternatives to local currencies as emerging markets face volatile currency fluctuations and hyper inflation. Zimbabwe, which has been the poster child for these bugbears due to its monetary policy, is a viable candidate for taking up cryptocurrency. It will be interesting to see how this plays out in Zimbabwe’s recently formed government

What New US Subsidies Mean for Soybean Farmers

If you’re a US soybean farmer, you’re probably weighing a host of conflicting factors that will determine how much money you make this year and what planting strategy to adopt for next year.

Summary of findings:

  • US soybean production is expected to hit a record high this year of some 4.6 billion bushels, or 125 million tonnes.
  • The US is engaged in an ongoing trade war with China, which levied a 25 percent tariff on US soybean imports.
  • Soybean futures prices slumped to a decade low of $8.33 per bushel in July for the August contract.
  • In response, the USDA announced direct payment subsidies to soybean growers of $1.65 per bushel — a total of $4.7 billion in government money.
  • Forward contracts and crop insurance also should benefit some, but not all, growers.
  • Still, farmers’ incomes in the soybean sector are projected to decline this year for the fourth year in a row.

However, new interest in China ramping up domestic production or increasing soybean acreage in lands acquired in Russia and Africa could reduce reliance on the US as a primary supplier.