1.
Storage in same location which
transforms period.
2. Transport from one location to
another which transforms location
and optionally period.
3. Tariffs or Duties transform from one
location to another.
4. Refining transforms one type to
another.

Combinations of the above methods
allow for futures or physical contract approximations of any
type to be represented.
Sugarflows, when calculating market clearing prices, evaluates
all the methods to transform any sugar to another in order
to see what is the trade that gives maximum return
to sellers as well as lowest cost for buyers. |