On balance, the hedge funds' record net long position has shifted the balance of price risks
towards the downside in the short term.
Based on new forecasts, analyst Timna Tanners now sees limited free cash flow payments by Alcoa to upstream AWAC joint-venture partner Alumina Ltd, potential excess alumina/bauxite supply, and potential price risks
from the Alunorte refinery restarting, the world's largest refinery.
Ultimately, any innovation around risk pricing requires insurers to get their algorithms out to consumers, on a machine learning platform that can make decisions in real-time to quickly price risks
and make a call on the level of cover that can be offered.
It said that problems could arise if markets do not correctly price risks
from extreme weather events and the move to a low-carbon emission economy.
In 1999, UGG realized that, despite hedging commodity and currency price risks
and purchasing insurance for property and liability exposures, earnings were still volatile.
This increased volatility and market uncertainty has increased the need for market players to hedge their price risks
in a safe and regulated environment.
VOLATILE The HGCA has warned farmers to manage price risks
as prices of wheat and barley fall around the country.
The report stated that "the resulting unusual, persistent, and large disparities between wheat futures and cash prices impaired the ability of participants in the grain market to use the futures market to price their crops and hedge their price risks
over time." It said the result was "an undue burden on interstate commerce."
* Underwriters are more easily and quickly obtaining information, such as vehicle reports and CLUE reports, to help assess and properly price risks
Marketing risks are composed of two major risks: structural risks and price risks
. Structural risks are those risks associated with the market channel such as how many sellers/buyers exist, what is the competitive level, and what is the accepted way to package, weigh, transport, grade, and regulate.
The European Central Bank yesterday lifted interest rates to a five-year high and said it will keep a very close eye on price risks
, leaving the door open for further rate increases some time next year.