La Croix Energy Capital | Petroleum Derivative Trading

“Think like a fundamentalist; trade like a chartist.”
Dennis Gartman. Rule #8 - Gartman’s Simple Rules of Trading

Sunday, April 18, 2010

Derivatives Trading (Again) in the News

Let's Have a Beer and Talk Derivatives
Apr-15 (BusinessWeek) -- From a Milwaukee office overlooking the original Miller Brewing plant, Craig R. Reiners haggles over futures contracts for barley, the primary grain in Miller Genuine Draft beer. He also negotiates aluminum futures, because the metal is used in the millions of beer cans the company produces every year, and works out more esoteric deals, such as swaps and collars on the natural gas that fires the brewery outside his window. Reiners' job is to insulate MillerCoors from commodity price fluctuations and ultimately protect the Great American Beer Drinker from having to pay more for a six-pack.