Hedge Your Physical Price Exposure (Summary)
Oahu's Commodity Margin Management Program offers clients the potential to preserve and improve profit margins by assisting their purchase & sales decisions. Employ strategies using futures, options or swaps to manage price risk.
Let's discuss challenges in your operations that are impacted by material price fluxuations.
What happened when your projected raw material, fuel or transport costs unexpectedly skyrocketed in light of your contracted sales commitments? How can you lock in today's prices on future sales?
Hedging Objectives
- Gain control of purchase & marketing plans through periods of unpredictable prices
- Manage input costs and wholesale pricing to customers
- Improve decisions on inventory with margin management
Focus on your business
Gain an experienced team of experts at your disposal. Hedge your physical exposure with a systematic process at your fingertips. Our clients are able to better manage their cash flow and strengthen their balance sheet while mitigating risk.
We provide our partners a wide variety of structured grain and energy solutions for marketing and hedging. Your exposure will be hedged in segregated accounts.
As a registered CTA, Oahu's team can advise on strategies as an extension of your operation. This allows you to focus on your business while controlling your hedging exposures.
Our job is to help you keep up to date with hedge accounting regulations and managing transactional decisions using on leading CTRM (commodity trade risk management) solutions. Be sure to read Oahu's approach to both energy and agricultural clients.
How we can help
- Commodity risk analysis and margin program development
- Processes to manage changes in risk exposures
- Quantitative research & stress test scenarios
- Corporate hedging policies, procedures, documentation and execution
Use strategies to potentially improve profit margins and reduce your cost basis. Leave the complexities of commodity margin management to the experts.
