Commodity Price Models
Hi,
I currently work for a physical trading company headed by an experienced trader in the petrochemicals and slightly further downstream business. The way he trades is mostly by intuition with feedback gathered from his contacts and friends (suppliers and purchases). I suppose a big part of the physical trading business is simply finding reliable people to trade with, and price is not the only consideration. However, is anyone familiar with more quantitative methods of modelling prices? There are no direct futures markets for these products, so there are no daily reliable prices unlike oil/gas for example. Is it possible to model prices in this market out? Both in the short term and long term
thanks