We help clients manage commodity wholesale margins in volatile price environments. Our focus is primarily energy, FX, metals and agriculture markets.
As a registered commodity trading advisor, Oahu Capital offers margin management services through the "OAHU AG AND ENERGY HEDGE PROGRAM" to hedge physical wholesale price risk. We help our clients navigate the complexities of derivatives to manage uncertainties of price volatility in their business. Our professional team is well experienced with futures, options, insurance, cash sales, forward contracts and a range of financial instruments.
We begin our client relationships by conducting a comprehensive review of their business to model and validate risk exposures around purchase and sales cycles. Our approach is a collaborative effort to develop processes that attempt to meet planned margin targets. Clients are able to stress test assumptions to quantify how strategies perform during volatile price conditions and devise pro-active plans for active weekly management.
Managing wholesale inventories and procurement with trade finance and price risk strategies can have a meaningful impact on operating cash flow and bottom line profitability. There is always risk of loss on derivative hedging strategies due to basis variance or correlation shifts to spot prices.
Commodity markets are characterized by different types of price behaviours which could change unpredictably at different times. Our approach is based on the premise that no single trading method can work effectively under all conditions to effectively hedge price volatility.
Let's discuss how our advisory program can help manage your bottom line.