As states deregulate their electric utilities, most are decoupling power production from distribution, with the result that distributors are becoming mega-purchasers of power and are more exposed to power price risk
than any other industry.
I was once involved in a transaction where the client had agreed on a programme to hedge the price risk
associated with anticipated monthly exports of approximately 180,000 barrels of crude oil from a particular field.
"Customers are increasingly accessing the deep liquidity across our energy markets to manage price risk
during this time of increased volatility and uncertainty," said Peter Keavey, CME Group Global Head of Energy.
The rater expects that the coal price risk
will increase over the next 12 months as domestic steel mills continue to trim capacity amid dwindling demand and the economic slowdown.
Press was previously with BHP Billiton, where he was responsible for all energy coal positions globally, including price risk
management and trading, the company said.
The guide covers: financial risk, both internal and external; personal or human risks; production risks including weather, climate, disease and pests, as well as equipment, labour and operational issues; marketing or price risk
; and finally institutional risk which includes all the external constraints and incentives society places on farmers.
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.
Certainly, investors in CMBS must price risk
* Permitting hedge accounting for price risk
exposures of future positions that in all likelihood will materialize.
Changing these rules could profoundly affect companies that extensively hedge interest-rate risk, commodity price risk
or foreign-currency risk associated with anticipated but not firmly committed future transactions.
Allstate has roughly 1M policyholders that are using its app or plug-in device, representing about 5% of its customer base, he notes, adding he expects this number to more than double in the coming 18 months, which will provide Allstate with enough data to extrapolate predictive analytics across its entire portfolio to price risk