Commodity auctions have the future
In many markets demand and supply are matched via telephone or email. Purchasers and suppliers phone intermediaries, who, in turn, phone each other, purchasers and suppliers. In a turbulent market, multiple phone calls regarding requests and offers are placed on a daily basis, and various companies are doing the exact same thing.
This method of working provides intermediaries with a good understanding of the course of developments.
Suppliers and purchasers often lack the time to delve into this, which prevents them from obtaining the best possible price.
Commodity auctions save a lot of work and enable all parties to quickly inform themselves of current market prices and volumes.
GWell-structured, regular auctions create clarity for all parties.
The anonymity of purchaser and supplier is guaranteed, while both parties know what the correct, current price is.
The ideal marketplace where demand and supply meet.
In commodity auctions big volumes and large amounts are involved.
Therefore, we have created a number of extra security features:
- The auction is private. Only bidders validated by the auctioneer have access.
- In additional to traditional login with login name and password, a text message is sent including a code. This code has to be entered by way of extra validation. Once this has been done, the bidder is granted access.
- Bidding limit per bidder; for every auction a limit may be imposed on an individual bidder. This means that a bidder can never overspend the amount determined by the auctioneer. Payment risks are reduced this way.
- In addition to bidders, viewers may be granted access too, i.e. people who are allowed to monitor the course of events, but who are not allowed to bid. Payment is required for this service, as auction prices are a commodity in themselves.
Our clients have seen various commodities and rights pass under the digital hammer, and successfully so:
- Dairy (cheese, butter, whey powder, milk powder etc.) see also below.
- CO2 emission certificates
- Green energy certificates
- Overstock of high-end manufacturers
In November 2011 this company started auctioning dairy products (cheese, butter, whey powder, milk powder etc.). Good preparation has been the key to the success of the auction, right from the start: every week, between 1500 and 2000 tonnes of dairy products are sold, and this volume is growing as we speak. This auction is regarded as a good indication of price trends in the European dairy market by an increasing number of parties. The auction is at http://www.dairyauctionsonline.com. You only have access to the general section.
We have created a demonstration page explaining the bidding process. This demo gives those who are interested in the dairy market a good impression of the process of an auction.
You will be able to see the lot page where several lots of twenty tonnes are offered. Bids are per kilo. If the bidder hasn’t placed a bid yet, the line indicating the remaining time will be blue. When you have been outbid, the line will turn red. When you are the highest bidder, the line will turn green. When you have placed the highest bid, but someone has bid before you, preventing you from obtaining the full volume, the line will turn orange. Next to the colour codes texts detailing the process will appear. You can find the demonstration page here.
Do visit us for an informal talk about your market and what you can do in order to consolidate your position and play a leading role in your market(s).
Phone +31 88 1919 000 or use the contact form.