Mercado Bursatil de Productos Agricolas

[Market Economy]

Mercado Bursatil de Productos Agricolas.

I join to the questioning by the leaders of the Bolsa Agroempresarial to the lack of progress of this exchange. In my view, this is an excellent financing tool for the agricultural sector in the country. More so now that CAFTA is upon us, and this sector is expected to lose some competitiveness.

The link to the article is below. It was published on 10.10.2006, if the link is not working, e-mail me, and I'll send you a copy of it.

THIS MARKET COULD BECOME A GREAT HEDGING MECHANISM FOR LOCAL PRODUCERS AND CONSUMERS !!!

Listín Digital :: El Dinero

Note: This is my personal opinion, an should not constitute investment advice. E-mail me at my personal address if you want to develop a dialogue

[Market Economy]

Chicago Mercantile Exchange(CME) and Chicago Board of Trade (CBOT) are set to merge creating a behemoth in the futures market. This is good for price discover.

Is it plausible that the Bolsa Agroempresarial merges with the Bolsa de Valores de la Rep. Dom.?

Money News:- CME, CBOT Get Swept Up In Talk Of Exchange Consolidation - AOL Money & Finance

CME*to buy CBOT for $8B,*eyes giant commodity exchange - Oct. 17, 2006

Note: This is my personal opinion, an should not constitute investment advice. E-mail me at my personal address if you want to develop a dialogue.

[beatrice1979]

Market Economy: I join to the questioning by the leaders of the Bolsa Agroempresarial to the lack of progress of this exchange. In my view, this is an excellent financing tool for the agricultural sector in the country.

Indeed. It is also my view that a well developed Bolsa Agroempresarial could be used as a promotional tool on the eve of the DR-CAFTA. The Bolsa, as other international commodities markets, has specific quality standards for the products traded in it as also guarantees fast and secure delivery of money and goods transactions. So that could be used as a bridge to trade internationally. Foreign companies may not be in the need to "know our producers" they may just want to purchase/sell dominican goods regardless of the company that produce them. An exchange guarantees quality and delivery of "dominican goods". That could attract investors that have little knowledge of "how to do business" the dominican way. Yes, I think it could be a great added value to boost trading internationally.

Is it plausible that the Bolsa Agroempresarial merges with the Bolsa de Valores de la Rep. Dom.?

I am not quite sure if that could be factible. I reckon that traders at the Bolsa de Valores (8 companies, mostly bank-based) are not the same that trade at the Bolsa Agroempresarial (+25 traders, representatives of agricultural companies). Both systems are different (one electronic the other floor-based) as are the overall promotional strategies of both exchanges. I would rather prefer to develop each exchange separately and focus on different targets for each of them.

[Market Economy]

beatrice1979


At your convenience, I can send you an excellent report (72 pages long) where Bolsagro explains its case and raison d'etre.





Note: This is my personal opinion, an should not constitute investment advice. E-mail me at my personal address if you want to develop a dialogue.