Message-ID: <23304264.1075856608766.JavaMail.evans@thyme> Date: Mon, 19 Mar 2001 07:13:00 -0800 (PST) From: nelson.neale@enron.com To: vince.kaminski@enron.com Subject: Softs in London Cc: vasant.shanbhogue@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: vasant.shanbhogue@enron.com X-From: Nelson Neale X-To: Vince J Kaminski X-cc: Vasant Shanbhogue X-bcc: X-Folder: \Vincent_Kaminski_Jun2001_5\Notes Folders\London X-Origin: Kaminski-V X-FileName: vkamins.nsf Vince, With regard to the softs curves development, I have been communicating with a couple of folks in London. The key contacts include James Willis (cocoa and sugar broker) and Nigel Majury (coffee broker). We had a conference call on Thursday (Heather, Trena, Erin, James, Nigel, Frank Speight, Nelson) to discuss data sources, data acquisition, priorities, and timelines. A number of data sources were identified (e.g., USDA, Int'l Cocoa Organization, ED&F Man, Landell-Mills Commodities, etc.) and both the Houston and London offices have taken steps to obtain the information. Curve development priorities were adjusted as well. Raw sugar remains the top priority; however, cocoa replaces coffee in the softs importance hierarchy. I suppose that this results from our physical (or soon to be) positions in both markets. The timeline hasn't changed; however, adjustments will have to be made since we haven't yet acquired all of the necessary data for price modeling. Moreover, per our discussion this afternoon, additional thought/time will have to be devoted to corn modeling to come up with an adequate hedging strategy. Nelson