Mumbai: The Reserve Bank of India today released draft directions on hedging of commodity price risk
and freight risk in overseas markets.
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.
For example, a food products company such as Kellogg's is exposed to price risk
from corn, soybeans, sugar and cocoa that are used in its products; from paper and plastics used in its packaging materials; from natural gas used as energy in its manufacturing facilities; from diesel fuel for transportation in its distribution network; and from energy consumed in its offices and distribution centers.
HE ENERGY EVENT 2010 has announced a major sponsorship agreement with ENCORE INTERNATIONAL, the independent price risk
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.
The crux of price risk
will usually pertain to a direct action; nevertheless it also can result from the circumstance of the business.