China's Dalian Commodity Exchange, three years ago, 2004, overtook the Chicago Board of Trade to become the second largest commodity exchange in the world.

Zambia depended on one major commodity copper for its foreign exchange earnings.

Now, the commodity exchange itself, that concept, is not new to the world.

Developing countries in general remained heavily dependent on commodity exports for their foreign exchange earnings.

Now, in Ethiopia, we're in the process of designing the first organized Ethiopia Commodity Exchange.

This has been a major impetus behind recent efforts to establish a pan African commodity exchange.

I currently lead, in Ethiopia, an exciting new initiative to establish the first Ethiopia Commodity Exchange, or ECX.

The volatility of commodity prices poses a serious risk for the sustainability of growth, and better international coordination is required to reduce the instability of commodity prices and exchange rates.

Depressed commodity prices lead to overproduction to maintain foreign exchange income, a process which often leads in turn to environmental deterioration.

Moreover, variations in exchange rates, particularly between the US dollar (in which most commodity prices are expressed) and currencies in which imported goods are priced, also affect the actual gains obtained from increasing commodity prices.

That was, of course, the birth of the Chicago Board of Trade, which is the most famous commodity exchange in the world.

The most basic function of a commodity exchange is to boost market efficiency through reducing transaction costs by concentrating trade in one place.

The Chicago Board of Trade was established then for precisely the same reasons that our farmers today would benefit from a commodity exchange.

Recycling commodity revenue and managing macro level commodity related risks

The creation of such an exchange will greatly improve conditions for commodity marketing and finance in Africa, including for national and intra African trade.

Since most African countries depend on from two to three main primary commodity exports for the bulk of their foreign exchange earnings, their external performance and external indebtedness are directly influenced by short term instability of primary commodity prices.

The dispute arose out of a sales contract for agricultural products which provided for arbitration under the Rules of the Commodity Exchange for Central Germany.

Emerging economies leaders fear spillover effects in commodity markets and distortions of exchange rates and capital flows that may compromise their own focus on financial stability.

This is more prevalent in the US, where regulators salaries are very low, especially in the Securities and Exchange Commission and the Commodity Futures Trading Commission.

The rules were ambiguous as to who (the CEO of the Commodity Exchange or each party) had the right to appoint the members of the tribunal.

This indicates that much more needs to be done to enable commodity sectors throughout the developing world to benefit from the full range of services that an exchange can offer, benefits that the commodity sector in India is only now beginning to enjoy.

Commodity prices fell, too.

Latin America s Commodity Windfall

Commodity information reducing asymmetries

Commodity prices d (percentage)

UNCTAD Commodity Yearbook 1993

Many commodity dependent economies were caught in a vicious circle whereby investments in commodity production did not generate adequate returns because of falling commodity prices.

212. UNCTAD other commodity conferences and commodity meetings Trade and Development Board decision 7 (I)

278. UNCTAD other commodity conferences and commodity meetings Trade and Development Board decision 7 (I)

196. UNCTAD other commodity conferences and commodity meetings Trade and Development Board decision 7 (I)

Financial risk management, typically, is focused on the impact on corporate value due to adverse changes in commodity prices, interest rates, foreign exchange rates and stock prices (market risk).

Again, a commodity for consumption.

Commodity information reducing asymmetries 9

strategies for commodity companies 15

International commodity agreements or arrangements

Commodity (litres) 1,000 litres Total

Primary commodity prices weakened considerably.

Commodity prices are like this.

In India, the installation of price tickers in remote local markets has resulted in shrinking spreads between the spot prices of commodities in these local markets and commodity exchange prices.

The Fund is an intergovernmental financial institution exclusively concerned with commodity development issues and commodity development projects.

International commodity markets are under stress.

United Nations commodity and other conferences.

UNCTAD's package of commodity information services

III. INSTITUTIONAL FRAMEWORK FOR COMMODITY DIVERSIFICATION

B. Global diversification and commodity market