Subject: Softs in London
From: [email-masked]
To: [email-masked]
Cc: [email-masked]
Date: Mon, 19 Mar 2001 07:13:00 -0800 (PST)

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