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Changing world cotton production and consumption levels, difficult to predict weather conditions in growing regions, expanded use of new technologies such as GM cotton, fluctuating demand, and rising wage levels makes the world cotton market as volatile as only a commodity market can be.
Physical trading in cotton comes equipped with bales of challenges. Traders have to juggle multiple participants - farmers, ginners, cooperatives, governmental bodies, etc - all of who play key roles in this business. There’s a need to keep a constant eye on cotton quality as it determines commercial value and price, harvesting and ginning (which again varies from nation to nation and is based on weather and soil conditions) as well as cotton classification, which itself is based on a number of physical standards such as color, leaf, length, miconaire and strength. Cotton pricing itself can be depressed without forewarning on account of myriad factors, including government subsidies, export patterns, harvests, etc. And then there’s bale management - tracking the quality of each bale and applying premium & discounts based on quality delivered adds one more touch of complexity. And finally segregating bales by quality for appropriate M2M valuation and sales adds a high degree of unmanageability to the whole operations.
Given the complex nature of the business, high volume information manageability, automation and visibility become business necessities that would help firms run the complex business in a more efficient manner. Spreadsheets, as expected, are woefully inadequate and messy, with no access to real time information. What is needed is a powerful transaction management that integrates the whole business and provides strong reporting, analysis and control tools to help run the business in a systematized and smooth manner. Eka is just the platform needed to cotton on to this business in a profitable way. The solution covers the entire lifecycle of both physical and financial contracts, combining front, middle and back office functionality on a modern, web-based technical architecture that ensures continuity, scalability and keep costs under control.
To learn about how Eka can add value to your operations click here or write to us at demo@ekaplus.com.
Physical Contract Management
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Manage long-term agreements, spot purchases and sales with various pricing methods – fixed, differential or quality based premiums and discounts.
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Incorporates industry specific requirements such as handling of multiple grades across multiple origins, product ratios for cocoa products, polarization premiums/discounts in sugar, etc.
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Comprehensive contract allocation management.
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Forward & Backward integration with supply chain partners: Grower portal for Grains origination business
Futures and Options
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Helps you identify and manage price risk.
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Derivative trades of types EFP, speculative, arbitrage & switches, and track strategies.
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Hedges can be allocated to physicals, and partial or final price fixation confirmations generated automatically.
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You can close-out trades, perform reconciliations with broker statements, and track commissions.
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Quick view of Net open positions, Variation Margins, Expenses on Futures & Options
Position Management
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One view of Real-time position visibility across physicals, derivatives and combined physicals derivatives allows you to identify exposures and take appropriate actions, while currency risk is managed through forwards that are available on the mobile phones and iPads as well.
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Capture, measure and report transactions in real time giving a complete transparent view of physical & financial positions and exposures.
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Track Position changes on a daily, weekly & Monthly basis by commodity & Profit center
Physical M2M
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Gain accurate mark-to-market valuation of open contracts and inventory, by taking into consideration all estimates & accruals, contract terms as well as location /quality premiums & discounts.
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View exposures, perform M2M and P&L calculations, settlements, and of course allocate these to physical contracts. These allocations can be one-to-one, one-to-many or many-to-one.
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Auto upload of Market quotes for Physicals and Derivatives for quick M2M P&L.
Logistics
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Completely streamlined multimodal movement of cargo from origin to destination by Road, Rail & Ocean.
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Stock updates with inward and outward weights closely monitored to trigger weight claims. Weights and costs updates are made at each contract execution step, and a comprehensive documentation module simplifies operations.
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Pool & Outturn Management for Grains.
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Intelligent workflow process that eliminates data entry errors and simplifies back office operations.
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Captures cost accruals at every logistical activity with comprehensive audit trail.
Finance
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Eka’s finance module allows creation of different types of commercial invoices, updating payables and receivables, tracking costs, monitoring cash flows and posting entries into your accounting package.
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One of the most powerful features of the application is the day & month-end procedures, which uses advanced algorithms to calculate and store the positions and P&L (unrealized and realized) on both physicals & derivatives.
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Excellent capability to integrate with accounting packages
Business Intelligence & Reporting
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Eka’s business intelligence tools help you understand how and why position and P&L are what they are, and how they have changed between any two periods, trade-by trade, and factor by factor. It enables the user to slice and dice the information.
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Generate multi-dimensional, cross departmental reports that gives users a 360-degree view of the organization’s positions, exposures and P&L
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Well structured, comprehensive suite of reports covering physical trading, logistics, stock, derivatives, currency, finance, end of day, end of month, position, mark to market, P&L. Exportable to spreadsheet, Word, HTML etc
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Generate multi-dimensional, cross departmental reports that gives users a 360-degree view of the
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organization’s positions, exposures and P&L
To learn about how Eka can add value to your operations, click here or write to us at demo@ekaplus.com.
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Eka.Agriculture
Softs
Grains, Oils & Oilseeds
Sugar
Cotton
Minors
Food Processors & Ingredient Suppliers
Meat, Poultry & Dairy
Refineries & Ethanol Plants
Commodity Trading Houses
Customer - Speak
We were constantly impressed by Eka’s people, their abilities, and, of course, the solution itself. While the product is integral to the business relationship, the commitment shown by the Eka team, their transparent and flexible approach, and their very high capability levels, helped us decide in favour of the Eka solution. Read more.
Finance Accounting Manager
GARMCO
Resource Center
Eka.Agriculture Brochure Download

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