Commodity Risk Management
What is it
With commodity risk management, we provide products that ensure your protection against adverse movements in commodity prices.
They are used either to fix a particular price level for a future period/date or ensure a worst-case price level with the option to take advantage of more favorable market prices.
Types of instruments:
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Commodity swap
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Commodity option
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Commodity collar
Advantages
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Up to 100% protection against fluctuations in commodity prices
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Up to 100% predictability of future payments (sales price, cost of materials)
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Potential to use favorable market movements
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Customized products tailored to the client's exposure
Whom is it Suitable for
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Companies who buy (supplies) or sell (producers) goods and raw materials such as base and precious metals, fuels and distillates, etc.
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Companies that produce, use in their production or trade with soft commodities (wheat, corn, rapeseed etc.)
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Companies working in the field of metals and mining, agriculture, oil and gas, transport and logistics
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All Corporate and Investment Banking clients