Globe traders 2010

1. There will be in total 2 rounds. First round will be a preliminary round

where you are asked to buy the commodities based on the news given at
start and increase your net worth which would be calculated before the start
of 2nd round. But keep in mind the currency conversion fees which might
be a heavy load at times and country specific prices.

2. In round 1 you as a trader will buy any of the 6 commodities from the 6
countries given to you taking in consideration the quantity cap. 10 teams
having top six net worth after Round 1 will play the final 2 rounds, which
will be held on 2nd August 2010 in the computer lab.

3. In Second round, teams will buy/sell the commodities amongst each other.
Details of the second round will be notified once the first round is
completed.

4. Before every round, teams will be provided with the information/news

regarding the exchange rates and the prices of the commodities pertaining
to the trading in various countries.

5. This information (exchange rates, prices and news) would be round

specific and would be different in every round. This difference may occur
due to change in trading regulations, change in demand due to festive
seasons, natural calamities which leads to logistical problems, changes in
weather and their irregularities etc.

6. Decision of the Team Globiz will be final and binding.

7. Following is the information regarding the preliminary round (ROUND 1).

 Basic Information
1. You have 1 million USD to start with.

2. The exchange rate tables , commodity prices tables are contained in the excel sheet
attached with the mail.

3. Above are the matrices, showing the countries currency exchange rates, prices of
commodities for a particular product along with quantity restriction.

3. We give you the liberty to buy as many commodities from any country, keeping in
mind the Quantity Cap given in the above table .

4. Investment in any portfolio of commodities (under the given constraints) is on your

discretion. And if apprehensive you can hold idle cash.

5. In case of a tie, the team who replies back early will get a higher rank.

6. If the quantity cap is breached then the maximum allowed quantity shall only be given
and a penalty of $500 will be imposed.

7. The ups and downs in the market are uncertain and hence the prices are undisputable.

8. Teams are allowed a maximum of 12 Transactions. The Teams have to mention the
“quantity, country and the commodity” for each transaction. These commodities will be
stored in the country in which they are bought. However there will be no storage costs.

9. All transactions will be converted to US dollars for evaluation parameters.

10. Transaction Value in USD = (Price X quantity) X (exchange price of USD for that
country) X (1 +conversion fees for that country)
Eg. You expect price of iron ore to increase in China, considering the news given and
supply.

11. Eg. You wish to buy the maximum quantity possible i.e. 3000 tonnes from China. Now,
value of this transaction shall be equal to [(602.87297 X 3000) X (0.13178) X (1 +
0.0004)] = $ 238,435.14

12. Total Net Worth = [Balance money from Round 1 + Commodities worth as per new
prices] (converted into dollar value).

13. Maximum change in price of any commodity due to particular news can be 10%
(plus/minus 10% of the current price, as given in the above Price Schedule).
14. While building a portfolio of commodities, keep in mind
a. The Strength of the News and it will have
immediate effects in the country of origin.

15. fill in your responses in the self explanatory excel sheet

attached with the e-mail.

16. No late entries would be entertained.

Launch Time: Tuesday, 31th august 9:00 PM

Submission Time: Wednesday, 1st September 10:00 PM
 NEWS

1) The government today rejected demand for ban on iron ore export, making it clear
that states must take steps to prevent illegal mining."Merely because state
governments are not able to prevent and stop illegal mining, we should not ban
export of iron ore," mines minister BK Handique said while replying to a debate on
illegal mining in the Rajya Sabha.

2) Iron ore imports by China, the largest buyer, are likely to recover next quarter and
break last year’s record as lower prices and depleted stockpiles spur purchases by
steel mills, Nippon Yusen K.K. said.

3) Indian Commodity Exchange (ICEX) plans to start trading a gold coins futures contract
to cater traders in smaller cities in association with the Bombay Bullion Association in
the next two months, the head of the bourse and trade body officials said on Friday.

4) Gold produced in Australian mines rose to its highest level in six-and-a-half years in
the June quarter. This occurred after established producers increased output, newly
commissioned mines were ramped up and new or 'recycled' operations came on
stream.

5) BP Oil slick in gulf of mexico. Highest oil loss ever in history,BP loses high time on stock
exchange.

6) As Ghana prepares to pump oil in the second half of 2010, hopes are rising, both
among hard-pressed market traders at home and in the far-flung Diaspora, where
Ghanaians are quitting jobs in American banks to head back to an optimistic
homeland.Oil was found off Ghana’s coast in 2007 .

7) The Russian drought, production loss in Canada, decreased exportable surplus in

Australia and the cancellation of export contracts from Ukraine due to non-clearance
from customs causing a concern.

8) The U.S. Department of Agriculture on Thursday cut its forecast for 2010-11 global
wheat output by 2.3% to 645.73 million tons. That was lower than expectations and
below recent estimates from the Food and Agriculture Organization and International
Grains Council, which both saw the crop at 651 million tons. This is a surprising move
from the USDA, which is traditionally more cautious in its crop adjustments.
9) The South African Sugar Association cut its forecast for this season’s production of the
sweetener by 3.5 percent to the lowest in 15 years because of a drought.

10) the US Department of Agriculture (USDA), announced it was to allow 450,000 tons
extra sugar imports into the country, only half the amount asked for by the nation's
Sweetener Users Association (SUA), which represents manufacturers of products that
use sugar

11) The once-in-a-century drought that has parched Southwest China would affect the
output of 60 percent of the coffee farms in Yunnan province, says a report by the
Coffee Association of Yunnan (CAYN).

12) Coffee consumption in UK has been growing at a steady rate of between 1 and 1.5 %
per year; a growth rate is well below that for food products as a whole which is closer
to 4% per annum.

GOOD LUCK AND HAPPY TRADING.

For Queries and Clarifications,

CONTACT:

Nishant Pilania: J-108 (7838590461)

Tanmay A-45 (9818658948)
:agnihotri: S)
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