Commodity Price Index: Benchmarks

Understanding Vesper’s Commodity Price Index

The Commodity Price Index is a critical metric in the world of commodities, reflecting market prices for commodities. It provides invaluable insights for businesses, procurement teams, finance and risk managers and stakeholders dealing with commodities. On the Vesper platform, the Commodity Price Index is represented through the Vesper Price Index (VPI), a proprietary benchmark, created by Vesper.

The Vesper Price Index is a proprietary and independent pricing benchmark created and published by Vesper. We aim to bring transparency to the market by gathering price inputs from a range of trusted industry players, including buyers, sellers, traders and brokers, and publishing prices that are representative of the market. The Vesper Price Index offers unique insights, including presenting previously unseen market prices and enhancing existing benchmarks. The Vesper Price Index is a powerful tool that strengthens negotiation power, providing trusted and reliable market prices. This combination of transparency, accuracy, and unique market insights makes the Vesper Price Index invaluable to market participants, increasing their negotiation power.

Benefits of Using the Vesper Price Index (VPI)

Comprehensive Insights
Gain a thorough and accurate reflection of market trends with the Vesper Price Index. Covering commodities across Dairy, Oils & Fats, and Sugar, VPI benchmarks prices from regions and countries worldwide.

Informed Decision-Making
Reliable, up-to-date commodity price benchmarks help you make informed decisions. Accurate price indices allow you to benchmark your own pricing and understand the current market landscape thoroughly.

Increased Negotiation Power
With precise, up-to-date price benchmarks, you can negotiate better terms with suppliers and buyers. Independent data strengthens your position, enabling more favourable deals and contracts.

Market Transparency
The Vesper Price Index enhances market transparency by providing a clear view of market movements. This clarity builds trust with stakeholders and partners, ensuring all parties have access to accurate information.

1. Find and select your commodity

Go to one of the pricing widgets (Prices, Price Comparison, or Forward Prices). In our example, we will use Prices.

1. Click on the Products dropdown.
2. To ensure you are using our proprietary pricing index, check for commodities with (VPI).
3. Select for example the butter UK VPI as seen in the screenshot below:

2. Hover over any price point

Hover with your mouse over any price point.

A small info card will open. You can then easily scan what the exact price is.

In the screenshot below, you can see that we are highlighting the UK VPI for 17 July, 2024.

3. Download VPI reports

One great feature is that you can also download VPI reports.

1. Follow step 1 on the screenshot: Get VPI Report.
2. Choose the commodity of choice (step 2).

You now will download a PNG image with all the price indices for many of the products available on our platform.

When you open it, it will look something like this:

Procurement Teams

A procurement manager at an FMCG company can utilise the Vesper Price Index (VPI) to benchmark raw material prices against the market. By analysing VPI data, they can identify if their suppliers are offering fair prices, ensuring cost-effective procurement strategies and better negotiation with suppliers.

Market Analysts

A market analyst can use the Vesper Price Index to study global commodity price trends and their implications. This data-driven approach helps in providing strategic advice on market entry, pricing strategies, and product development based on accurate and up-to-date market benchmarks.

Sales Managers

A sales manager can leverage the Vesper Price Index to identify trends in commodity prices. By understanding market benchmarks, they can set competitive pricing strategies, tailor sales approaches to market conditions, ensuring they are staying competitive in the market.

Risk Manager

A risk manager can utilise the Vesper Price Index to identify potential price volatility and supply chain risks. By monitoring price fluctuations and stability in different markets, they can develop strategies to mitigate risks and ensure the stability of the supply chain.