The new EM currency contracts will provide DGCX market participants with additional tools to manage their price risk
and exposure to foreign currencies as well as provide new arbitrage opportunities.
Cargill is expanding its commodity price risk
management solutions and products to include base metals derivatives.
Cargill's cocoa and chocolate business, one of the leading players in the global cocoa and chocolate market, has launched three new tools in its portfolio of Price Risk
Services to help customers more easily manage price risk
is the risk that wheat prices will be prohibitively high, making purchase difficult even though quantity is available on world markets.
Agricultural policy reform on both sides of the Atlantic is fueling a rise in farmers and growers using price risk
management tools, according to speakers at a recent conference in London.
HGCA senior analyst Jack Watts said that managing price risk
is as important as managing yield and should take up the same amount of management time.
With attitudes in the soy complex bullish and traders concerned about supplies as the market moves through the 2007-08 marketing year, there's major upside price risk
once futures start charging higher again.
They envisioned a world in which producers of commodities seek to hedge the price risk
of their output.
A futures contract provides industry with a method of managing price risk
and the ability to lock in an attractive sale or purchase price for a given period, regardless of price volatility, according to the LME.
But much of the information needed to fully assess and price risk
is locked away in the policy and claims statistics amassed by insurers, who have little incentive to share this information with their customers.
However, due to thinness in underlying markets for certain commodities, some manufacturers are forced to deal in spot markets and have had few options for managing price risk
The New York Board of Trade (NYBOT) will be co-producing along with Tea & Coffee Trade Journal a roundtable discussion with coffee industry leaders on managing price risk
associated with buying green coffee.