A method for transacting transfers of commodities involves observing the price
of a commodity at several observation points over a period of time. In one embodiment,
a maximum price is specified. For each observation point, the maximum price is
selected in the event the observed price is greater than the maximum price, or
the observed price is selected in the event the observed price is less than the
maximum price. The price for a quantity of the commodity then is calculated based
on the average of the selected prices and a premium. Individual contracts can be
aggregated to reach more acceptable trading quantities and intervals, enabling
participation of a derivative hedging products service provider and intermediate
parties such as resellers and reseller services companies. Aggregation can be carried
out manually or automatically, and configured to support anonymity of various parties
in the transaction chain.