Commodity risk refers to the uncertainty of future commodity prices including metals, fuel, grains, energy, etc., due to fluctuations in the markets. Organisations sensitive to commodity prices include participants in the entire supply chain such as producers, consumers and distributors. An airliner for example, could be concerned about the increased costs caused by rising jet fuel prices, while a corn producer might be worried about foregone profits due to falling corn prices.
Using various financial instruments we offer a range of hedging strategies that enable clients manage risk including:
- Commodity Futures and Swaps
- Commodity Options and Collars