Commodity Risk Management

Financial instruments designed to provide protection against adverse commodity market prices fluctuations

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:

  • Commodity swap

  • Commodity option

  • Commodity collar

Advantages

  • Up to 100% protection against fluctuations in commodity prices

  • Up to 100% predictability of future payments (sales price, cost of materials)

  • Potential to use favorable market movements

  • Customized products tailored to the client's exposure

Whom is it Suitable for

  • Companies who buy (supplies) or sell (producers) goods and raw materials such as base and precious metals, fuels and distillates, etc.

  • Companies that produce, use in their production or trade with soft commodities (wheat, corn, rapeseed etc.)

  • Companies working in the field of metals and mining, agriculture, oil and gas, transport and logistics

  • All Corporate and Investment Banking clients

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