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1
Commodity Risk Management
Daniel Hofstad Risk Management Consultant
Building a Risk Management Program
International Assets Holding Corporation | www.intlassets.com
2
Commodity Risk Management
Outline of Presentation
I. Introduction to OTCs
a. differences vs. exchange traded
b. Exchange traded futures, how prices are established
c. Contract specifics and margin commitments
II. The Philosophy of Hedging
III. Market Correlation & Basis
a. Black Sea grain correlation to CME
a. Basis
a. Hedging with Basis
IV. Opening a trading account
3
Commodity Risk Management
What exactly are they?
– OTC’s are off exchange derivatives of which the value depends on the price of the underlying instrument
– A combination of volatility, strike price, maturity dates, averaging windows and underlying prices make up the prices of OTC options
– Products offered typically reference exchange prices, or cash prices
– Products are designed to match the cash flow requirements of the product being hedged
– Can hedge commodities that are not traded on an exchange, as long as they are priced on a referenced index, (DOE Diesel)
What Are OTCs
4
Commodity Risk Management
• Exchange Options
– Options traded on a formal open outcry or electronic means
– Options are traded as American where early exercises are possible
– Electronic options can be European which are financially settled
• Over-the-Counter (OTCs) Options
– Options are traded as European financially settled (end of period) or Asian (average of period)
– OTCs can be tailored to closely match consumers commodity price risks
OTCs vs. Exchange Traded
5
Commodity Risk Management
• Provides the needed flexibility for pricing requirements
• Customizes specific hedging strategies
• Easily combines with existing futures and physical positions
• Creates unique risk reward profiles for the client given the
market bias or risk limits in place
• Can cover the exact risk more closely then exchange traded
futures and options
• Can be non contract specific sizes
OTC Summary
6
Commodity Risk Management
Who are they traded with?
– OTC’s quotes are obtained through a counterparty
– Trades are initiated with a counter-party through
broker or directly
– Banks, physical players, market makers, trading
companies and re-insurance companies
• Who are they insured with?
– FCStone is one of the few firms in the industry that
have and continue to carry third party insurance
and credit swaps
• Who tracks the trades, tracks margin calls?
– FCStone continually monitors positions, tracking
prices on trades through a third party mark to
market system4
Who Trades and Tracks OTCs
7
Commodity Risk Management
• Energy Products
– Average settled swaps on retail fuel price in U.S.
– Coal
– Electricity
• Currencies
– NDF (non deliverable forward) USD/UAH,
USD/RUB
• Agriculture
– Sunoil (6 port price index)
– Palm oil options
– Fertilizer (Urea black sea)
Common OTCs
8
Commodity Risk Management
• Domestic or FOB milling wheat
– Domestic swap that settles vs. the average of the monthly reported
IKAR EXW price for 3rd grade wheat (example)
• Sugar
– Domestic swap that settles vs. the average of the monthly IKAR sugar
index
• Sunoil export price
– Swap that settles vs. the FOB port price weighted average of the black
sea export ports or 6 port price
• FX
– NDF’s on UAH/USD and RUB/USD
• More…..
– In general there are many possibilities as long is there are companies
needing to manage the risk and financial brokers willing to provide the
OTC
Potential OTCs in Black Sea Market
9
Commodity Risk Management
Reasons for Hedging
• Depending on the type of business
– Better Utilization of Facilities
– Inventory Protection (Risk Transfer)
• Physical or forward price ownership
– Accumulate Inventory (Flexibility)
– Innovative pricing programs
– Manage budgets
– Additional Profit Opportunities
• Increase Margins
• Cap risk, manage volatility
– Opportunity=Risk
– Provides Certainty within your operation
10
Commodity Risk Management
Agricultural Producer
• Produces: milling wheat (50,000 MT)
• Planting period: (September/October)
• Harvest period: (June/July)
• Selling Terms: EXW on forward terms for future
delivery after harvest (sell in Feb/May and
deliver the grain in August/September
11
Commodity Risk Management
Producer’s Risks
• Risk that wheat price declines before they have
sold it and after they have established costs for
production (lower revenue margin)
• Risk that spot wheat price rises after they have
forward sold on the cash market (opportunity
cost)
• Risk that if they hedge with futures market, the
spot market declines relative to the futures
market before they sell on spot market (basis
risk)
12
Commodity Risk Management
Producer’s Hedging Goals
• Reduce risk of falling crop prices and lower
revenue margins
• Fix a portion of the production margin ahead of
harvest
• Maximize production profitability
• Reduce risk of loss on financial hedges
13
Commodity Risk Management
Hedging Philosophy
• Identify potential
opportunities to hedge at
higher price levels
• Identify opportunities to
forward sell at higher cash
price levels
• Utilize derivative strategies
that allow for opportunities
to increase margins
• Develop strategies to
improve basis position
• Analyze futures market
seasonal price patterns
and behavior
• Analyze cash market
seasonal price patterns
• Focus on options
strategies that limit risk and
allow of increased margins
on the crop prices
• Analysis of basis patterns
and strategies
14
Commodity Risk Management
OCT NOV DEC JAN FEB MAR APR MAY JUN JUL
JAN FEB
Wheat Hedging Example 2013 Production
*Periods of risk for individual crop (lower market risk) in the green bar
*From when forward sale made until wheat is delivered (opportunity cost) in the yellow bar
Wheat 50,000 MT
Costs / Budget
established
Wheat Forward Sold
Wheat Delivered
Wheat 50,000 MT
15
Commodity Risk Management
Quantifying Profit Margin Risk
• Accounting Method
Costs: Wheat $150/MT (sunk October)
Revenues: Wheat $200/MT EXW (February Sale)
(Budgeted)
________________________________________________
Gross Profits: Wheat $50/MT ($200-$150)
Risk: As EXW prices decline, Producer is at risk of
reduction in gross profit margin for the period between
October until February.
16
Commodity Risk Management
Identify Mechanisms to Hedge
• Futures Exchanges Potentially Suitable
• CME wheat futures
• Instruments
• Futures, options, option combination strategies
• Cost/Benefit Analysis
• Which mechanism works best to manage the firm’s
risk?
• Which mechanism works best within the goals of
company’s management and business? “hedge risk
while limiting risk of loss on financial hedge”
17
Commodity Risk Management
Correlation (CME vs. Black Sea Market)
Cross
Hedge
2010 2011 2012
CME SBO /
BS SFO
0.7308 0.6208 0.6538
CME SB /
BS SB
-0.1543 0.5868 0.9441
CME SBO /
BS SFS
0.8000 0.4800 0.6300
MATIF RS /
BS RS
0.8757 0.8866 0.7810
CME SB /
BS SFO
0.4700 0.4400 0.7200
18
Commodity Risk Management
CME Corn Correlation
19
Commodity Risk Management
CME Wheat Correlation
20
Commodity Risk Management
Components of a Crop’s Price and Risk
Basis Component
Reflects local
supply/demand factors,
transportation and
quality differentials,
etc.
80%
20%
Futures Component
Reflects Macro
environment factors
such as
supply/demand and
economic conditions
*Assuming 0.80 R^2 between futures and crop price
$160
$40
$200/MT Total
21
Commodity Risk Management
Importance of Basis
FUTURES PRICE
+
BASIS
=
NET EFFECTIVE
PRICE
Uniform and transparent
to all market participants,
Easy to fix/hedge (Same
for everyone)
Varies by each region and
location, is fixed once
cash price for
purchase/sale is made
(different for everyone)
Given that futures can be
easily fixed, the net
effective price becomes a
function of basis position
22
Commodity Risk Management
Example of Crop Price (+ and – ) Basis Values
CASH $200/MT Wheat
MARKET: CPT Odessa
(-)
FUTURES $250/MT Wheat
MARKET: CME Sep. Contract
_________________________
=Basis $50.00/MT (Under)
CASH $250/MT Wheat
MARKET: CPT Odessa
(-)
FUTURES $235/MT Wheat
MARKET: CME Sep. Contract
_________________________
=Basis $15.00/MT (Over)
Positive Basis
Negative Basis
23
Commodity Risk Management
Components of a Crop Production Hedge
Costs of inputs, labor, equipment and
storage that must be covered in order to
make a profit
Production
Cost
Futures
(Hedge) level
Breakeven
Revenue or price level fixed vs. the
futures index, represents a % of the
total crop price subject to correlation
Basis level
Net Cash Market Price
Relationship between futures price and
physical cash market commodity price
(Basis = cash price – futures price).
Can be positive or negative value.
Losses
Pro
fits
or
*Once Futures price and Basis level are fixed via hedging Net Cash Market
Price = Net Hedge Price
24
Commodity Risk Management
Revenue or price level fixed vs. the
futures index, represents a % of the
total crop price subject to correlation
Relationship between futures price and
physical market commodity price (Basis
= spot price – futures price)
Components of Hedge Price Example
Costs of inputs, labor, equipment and
storage that must be covered in order to
make a profit
Production
Cost
($170/MT)
Futures
(Hedge) level
($239/MT) Breakeven ($170/MT
Basis level
(-$5/MT)
Net Hedge Price (Spot
Price $234/MT)
*If Basis and Futures level are hedged = Profit of $64/MT
or
25
Commodity Risk Management
$245 $245 $245 $245 $245
Basis Example (Wheat)
April May June July August
FUTURES
EXW
BASIS
Producer has sold Sept. wheat futures at $245/MT to hedge
lower EXW prices at harvest. He has therefore fixed the futures
price component and is now exposed only to basis (difference
of EXW price and Sept. futures) price risk
$230 $235 $240 $245 $250
$-15 $-10 $-5 $0 $5
As we can see, when basis is higher (stronger) it benefits the
producer with a higher EXW price because by selling futures
and owning the wheat he is long basis. So the $20 gain in his
basis position, is the same as the net improvement in his cash
position
26
Commodity Risk Management
Fixing Basis Example (Wheat)
April May June July
FUTURES MT
PRICE (MTM)
EXW PRICE
BASIS
Producer has sold Sept. wheat futures at $245/MT in April to hedge
lower EXW prices at harvest. Current basis for Sept. delivery of the
wheat is -$15/MT for EXW and he is targeting a basis of +$5/MT or
better and will then fix the basis.
$230 $237 $242 $251
By July the basis level has reached the producers target and therefore
he can fix basis by liquidating the futures hedge (buy Sept. futures)
and selling forward to the exporter at $251/MT
-$15 -$13 -$13 $11
$245 $250 $255 $240
27
Commodity Risk Management
Fixing Basis Example (wheat) Futures P/L
April May June July NET
FUTURES MTM
PRICE
FUTURES P/L
EXW PRICE
BASIS
When we combine the effect of the profit and loss on the hedge with
the profit and loss on the physical position we can see it is the same
as the profit and loss on the basis.
$0 -$5 -$10 +$5 +$5
NET POSTION CALCULATION = $251 (EXW) + $5 (FUTURES P/L) =
$256 or $26 better than the price in April represented also by a basis
improvement of $26
$230 $237 $242 $251 +$21
$245 $250 $255 $240
-$15 -$13 -$13 $11 +$26
28
Commodity Risk Management
July 15th Sell at $251 EXW Buy @ $240 +$11
Date
April 1st
Cash EXW
Price = $230
Futures
Sell @ $245
Basis
-$15
+$21 +$5 +$26
Position Ledger for Transaction
May 15th Price = $237 MTM $250 -$13
June 15th Price = $242 MTM $255 -$13
Start Hedge
Liquidate
Hedge
*Notice that the net gain/loss on both futures and cash position is
equal to the final basis position and its gain/loss (+$26/MT)
29
Commodity Risk Management
Managing the Basis Risk Component
• Basis can be determined at any time as the domestic or destination
cash price for the commodity less the relevant futures market price
(EXW Odessa corn of $251/MT – Sept. corn futures of $240/MT =
basis of +$11/MT)
• Similar to futures market prices, basis price has seasonal tendencies
that can be taken advantage of by producer or consumer
• As a producer of a commodity you are inherently long basis, as such
your physical position increases in value as basis increases once you
have hedged by going short in the futures market
• Even when both futures and cash markets are falling, as long as basis
is increasing, as a hedger who is long basis you are better off
• In some cases, basis can be fixed at the same time as the futures
price level, at a different time as the futures level, or not fixed at all
30
Commodity Risk Management
FOB Black Sea Basis
Typically we see wheat basis peak during the spring and again in the end of the year. This is
therefore when a producer should try to maximize their basis position
31
Commodity Risk Management
Managing the Futures Component
• Futures price can be determined as the futures contract month and
exchange for which you will be hedging your crop, (September
CME 2013 corn).
• Futures markets tend to behave in seasonal patterns, as well as
technical price patterns which can be studied in order to help
determine optimal time of placing the futures price hedge.
• As a producer of a commodity you are long the commodity and
therefore take an opposite position in the futures market to hedge
or a short position (selling futures).
• Futures hedge can be initiated at any time during the course of the
period of risk, however when unhedged you are accepting the
market based price risk of the physical position.
32
Commodity Risk Management
Wheat CME Futures
Typically we see wheat futures peak during the most critical period of the U.S. growing season for
winter wheat during Jan - Mar. This year it likely occurred during the summer as the drought in the
US and Russia worsened.
33
Commodity Risk Management
A few additional thoughts
• Basis may be negotiable, and when you sell hedged grain, you are
in a position to negotiate
• You have time to wait because flat price risk is protected
• Patience is key to attaining your goals
• A producer/consumer of a commodity must be concerned about flat
price, then basis, with the consideration that he must cover
production costs and make a profit.
• If handlers of grain use futures to protect flat price risk, then basis is
the only ownership to be concerned with
• If both buyer and seller of the commodity hedge using futures, they
may exchange futures positions to eliminate further market slippage.
34
Commodity Risk Management
Position Record
A priced grain position record (long & short) which records all purchases, prices and average price
of accumulated inventories, plus all dispositions,
both cash and futures, is ESSENTIAL!
35
Commodity Risk Management
For your organization to become successful in your hedging operation, it will be important to follow these guidelines:
– Discipline: You will need to have the discipline to delegate time –
either yours or that of a capable employee – to spend on hedging. Always be a disciplined hedger… don’t speculate!
– Basis History: You must have basis history of the markets in which you are going to be involved and understand how the cash markets relate to your hedge position
– Cash Flow & Credit: You will need to continually examine your credit needs in relation to changing prices. It is necessary that your company be familiar with hedging and understand that margin calls may occur and that a loss in the futures market should correlate with a gain on the physical commodity.
36
Commodity Risk Management
Opening a Hedging Account
1. Provide Financial Statements and Other Documents for Due Diligence and
Regulatory Requirements
• These are then reviewed by FCStone credit and risk departments (2-5
Days)
2. FCStone will then establish trading limits and any applicable credit lines
based upon the customers financial review
• This process protects both the company and its customers from
exposure to risky customers (1-2 Days)
3. Customer signs relevant account documents and submits signed originals
to FCStone
• In general there are 3-4 documents which need to be signed by client
depending on the products they wish to trade (1-5 Days)
4. Customer is issued account number and account is opened
• Customer will fund the account with appropriate margin amount required
and commence trading/hedging
37
Commodity Risk Management
Hedging Process with FCStone
1. Once account is open, FCStone consultants will advise on appropriate
hedging strategy (for customers who are consulting clients)
2. Customer makes ultimate decision on which strategy to use and when to
implement
3. FCStone consultants will advise clients on price of strategy, margin
requirements if required, and relevant cost/bennefit information.
4. The Order is worked at the desired price, or executed at the current market
price per the customers instructions.
• Customer is given confirmation of order once executed and price of
order
5. Customer receives daily statements with profit/loss information, margin
requirement and open position mark-to-market value.
38
Commodity Risk Management
Communication with FCStone
1. Daily Market Updates and Report
• Fundamental analysis
• Technical analysis
• Derivative positions and profit/loss
2. Hedging Strategy Analysis and Recommendations
• As needed based on how the physical market position of the business is
changing
3. Questions and Quotes Anytime
• Phone (desk and mobile)
• IM (yahoo instant messenger)
• Bloomberg
• Trading systems (Alpha FX, QST, CQG)
COMMUNICATION IS THE MOST IMPORTANT FACTOR IN A
SUCCESSFUL HEDIGNG PROGRAM AND OUR RELATIONSHIP WITH
YOU!!
Page 39
Спасибо за внимание!
Dan R. Hofstad
+44 (0) 20 3580 6076 Office
+44 (0) 20 7626 6030 Fax
+44 (0) 77 8561 0558Mobile
Yahoo I.M: danhfcstone
Skype: daniel.hofstad
Dan.hofstad@fcstone.com
Commodity Risk Management
Page 40
Disclaimer
The following presentation should be taken in conjunction with the most recent financial statements and notes thereto as well as the most recent Form 10-Q or 10-K filed with the SEC. This presentation may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond the Company's control, including adverse changes in economic, political and market conditions, losses from the Company's market-making and trading activities arising from counter-party failures and changes in market conditions, the possible loss of key personnel, the impact of increasing competition, the impact of changes in government regulation, the possibility of liabilities arising from violations of federal and state securities laws and the impact of changes in technology in the securities, foreign exchange and commodities dealing and trading industries. Although the Company believes that its forward-looking statements are based upon reasonable assumptions regarding its business and future market conditions, there can be no assurances that the Company's actual results will not differ materially from any results expressed or implied by the Company's forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned that any forward-looking statements are not guarantees of future performance.
In this presentation and in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of our Form 10-Q and 10-K filings with the SEC, we present financial information on a non-GAAP basis in order to take into account mark-to-market adjustments in our physical commodities business within our Commodity & Risk Mgmt Services segment. Please note that all financial information provided in this presentation, referred to as an adjusted number, reflects our results adjusted for these mark-to-market adjustments and are non-GAAP numbers. For a reconciliation of these adjusted numbers with their corresponding GAAP numbers, please see the appendix to this presentation.
41
Commodity Risk Management
Putting the Strategy Together (2013 new crop)
• New crop corn prices higher than average (CME Sept. futures).
• Current: 245, 2012: 225, 2011: 220, 2010: 167, 2009: 160
• Creates opportunity to hedge higher than average futures price
• Current intentions and Budget
• Plant 50,000 ha of corn
• Projected yield of 4.0 MT/ha
• Total production of 200,000 MT
• Production costs $125/MT
• Budgeted selling price EXW $215/MT
• Hedge 50% of production between February and April 2013
• Develop basis strategy
• Once futures hedge is placed, Mryia becomes long EXW corn basis
• Examine seasonal opportunity to fix high basis value
• EXW basis typically appreciates $20-$50/MT between April and July, to an
average level of approximately $10 - $15 under CME price
• Therefore Mriya will target a $20-$30 basis gain once futures are sold
42
Commodity Risk Management
Hedging Strategy Timeline
FEB MAR APR MAY JUN JUL AUG SEP OCT
Planting
Hedge futures price (Sep CME) /
Establish long basis position
Fix basis, target appreciation in basis of
$20/MT
Deliver corn, complete sale.
Liquidate hedge and contract for physical sale
43
Commodity Risk Management
Hedging Strategy Simulation (Futures)
*BASIS STRATEGY = Target appreciation (gain) in EXW
basis of $20-30/MT between March and June 2013
*HEDGE VOLUME = 100,000 MT
1st Hedge placed
(50%)
2nd Hedge placed
(75%)
3rd Hedge placed
(100%) or 50% of
total production
50% of hedge
liquidated and
basis fixed
100% of hedge
liquidated and
basis fixed
NET RESULT = $227 EXW price + $6.50 futures P/L = net
corn revenue hedged price of $233.50/MT
Grain
delivered in
Sep/Oct
Basis goal
reached, hedge
liquidated
44
Commodity Risk Management
Producer Hedging Strategies (Options)
Put Spread
• Consists of buying a put option and selling a put option of a lower
strike price.
• Creates limited amount of protection from lower prices for a fixed
known cost (premium) similar to insurance
• Does not require margin to be maintained in trading account aside
from premium cost.
3 Way Option Spread
• Consists of buying a put option, selling a put option of a lower strike
price, and selling a call of a higher strike price than the long option
• Creates limited amount of protection from lower prices for a fixed
known cost (premium) which is generally much lower than a put or
put spread cost.
• Requires margin to be maintained in a trading account (due to short
call option)
45
Commodity Risk Management
Put Spread Corn Hedge Example
Parameters
• Physical Portfolio
• 200,000 MT, long (production)
• Anticipates to sell by July
• Current price assumption EXW Odessa price, $202/MT
• Hedge 50% of production (100,000MT)
• Put Spread Strategy
• CME Sept. Corn Futures
• Initiate options strategy In April
• Current Futures Price level to fix/protect: $6.25/bu or $246/MT
• Current Basis = -$44.00 EXW
• Target Basis = -$20.00 to -$15.00 vs. Sept. CME
46
Commodity Risk Management
Put Spread Risk/Reward Structure
P/L at
Expiration $0
$+
$(-)
Breakeven Futures Level: =
(higher put strike level – net
premium paid for put
spread)
Lower Put Strike Level =
Max Profit Futures Level
Max Loss Futures Level =
Higher Put Strike Level = net
premium paid for put spread
Futures Price
Level at
Expiration
47
Commodity Risk Management
Futures
Put Spread Corn Hedge Example(Current Values)
Sep
Bought
Higher
Put
Sold
Lower
Put
Area of increased value
to physical position, no
additional loss on
hedge
Area of increasing
hedge protection (profit)
as market moves lower
Area of decreasing
physical position as
market moves lower,
max hedge profit
Expiration
Futures
Level
$244.00 ($20.86/MT)
$220.00 ($10.63/MT)
$246.00
Net Cost of Put Spread=
$10.23/MT
Option (Put)
Strike Prices
(Levels)
48
Commodity Risk Management
Put Spread Hedge Performance at Expiry (Aug 23rd)
Futures
Price Level
Net Grain
Position
P/L ($/MT)
Physical
Corn
(Unhedged)
$+
$(-)
$0
Corn Put
Spread
Net Corn
Position
(Hedged)
$220
(Short Put)
$244
(Long Put)
$300
$170
+$56
+$45.77
-$74
-$60.23
Futures Level (SEP CME)
+$13.77
49
Commodity Risk Management
3 Way Option Spread Risk/Reward Structure
P/L at
Expiration $0
$+
$(-)
Breakeven Futures Level: =
(higher put strike level – net
premium paid for put
spread)
Lower Put Strike Level =
Max Profit Futures Level
Max Loss Futures Level =
Potentially unlimited as futures
increases past sold call strike
level
Futures Price
Level at
Expiration
Sold Call Strike Level
Higher Put Strike Level
50
Commodity Risk Management
3 Way Option Wheat Hedge Example(Current Values)
Sep
Sold Call
Bought
Higher
Put
Sold
Lower
Put
Futures
Area of increased value
to physical position, no
additional loss on
hedge
Area of increasing
hedge protection (profit)
as market moves lower
Area of increased value
to physical position, and
additional loss on
hedge position
Area of decreasing
physical position as
market moves lower,
max hedge profit
Expiration
Futures
Level
$275.00 ($7.18/MT)
$244.00 ($20.86)
$220.00 ($10.63/MT)
$246.00
Net Cost=
$3.05/MT
Option Strike
Prices (Levels)
51
Commodity Risk Management
3 Way Option Hedge Performance at Expiry
Futures
Price Level
Net Grain
Position
P/L ($/MT)
Physical
Corn
(Unhedged)
$+
$(-)
$0
3 Way Corn
Option
Net Corn
Position
(Hedged)
$220
(Short Put)
$244
(Long Put)
$275
(Short Call)
+$21
$300
$170
-$53
-$74
+$56
52
Commodity Risk Management
Futures
Brokerage &
Clearing
Over the
Counter
Brokerage &
Clearing
Physical
Commodity
Brokerage
Mission: To reduce commodity price risk while improving bottom line results for our customers
Products and Services
Risk
Management
Consulting
53
Commodity Risk Management
Background
54
Commodity Risk Management
GRAINS & OILSEEDS
ENERGIES
METALS
SOFTS
FINANCIALS & FX
LIVESTOCK & DAIRY
FERTILIZER
RENEWABLE FUELS
IB SERVICES, DEBT SERVICING
LUMBER & PULP
Markets and Products Served
55
Commodity Risk Management
Development of a Risk Management
System
•Goals & Objectives
•Deliverables
•NDA
•Account Documents
Proposal/Plan
•Program Structure
•Management
•Metrics
•Tools
Policy & Strategy
•Tactical Assessment
•Platform Analysis
•Accounting
Execution
Evaluation
56
Commodity Risk Management
Risk Management
Policy/Plan
Goals & Objectives
- Risk Tolerance
- Knowledge
- Financial Situation
- Physical Assets
Data Analysis /Modeling
Industry Intelligence
- Supply, Demand, Weather, Politics
- Customer receives Daily, weekly, monthly, and special reports
- Webinars
Execution & Hedging
• Futures • Options • OTC’s • Cash • Wait
Year End Analysis
Month End Report
Training
IRMP
Commodity Risk Management
57
Commodity Risk Management
IRMP
Commodity Risk Management
58
Commodity Risk Management
Matt J. Ammermann
44-(20)3580-6087 Office
44-(20)7626-6030 Fax
44-(0)8561-0551 Mobile
Matt.ammermann@fcstone.com
Skype: matt.ammermann
Yahoo IM: m_ammermann
Daniel R. Hofstad
44-(20)3580-6076 Office
44-(20)7626-6030 Fax
44-(0)-77-8561-0558 Mobile
Dan.hofstad@intlfcstone.com
Skype: daniel.hofstad
Yahoo IM: danhfcstone
Contact Information
Thank You!
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