Commodity Markets / Agriculture

Hedge Agricultural Product Price Exposures

Price volatility in agricultural, dairy, and grain markets can significantly impact your cash flow, returns, and margins, ultimately affecting your earnings per share (EPS). Implementing hedging strategies can help manage this risk and ensure you're better positioned for the future.

Common hedgeable agricultural products: Cocoa, Coffee, Cotton, Dairy, Grains & Oilseeds, Livestock, Lumber, Rubber and Sugar.

Helping producers, consumers, manufacturers, and
investors protect their cash flow and returns.
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CTRM Success Story

Commodity volatility severely hampered the ability of Senior Executives to forecast corporate-wide Earnings Per Share (EPS) accurately.
This CPG Company implemented and leveraged the AEGIS CTRM to quickly input broker positions, reconcile, and run risk scenarios on unhedged portions of the company’s forecasts.
As a result of the partnership with AEGIS, this CPG Company decreased EPS volatility and improved its hedge program results. Workflows and approval processes were also utilized across multiple departments, which aligned with Sarbanes Oxley requirements.

Full story

Spreadsheets weren't built for managing your hedges.
Our software was.

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Customer Fixed Price Agreements

QSR, CPG, and Retail customers have difficulty changing menu prices on the fly, so, therefore, in volatile commodity markets, they tend to request fixed price contracts with their suppliers.

The dilemma is that sales is anxious to retain customers and honor fixed price agreements, but what happens when prices go wrong and erode your profit margins?

AEGIS Hedging can effectively hedge all of these agreements of the leg into hedge strategies that will maintain and possibly increase margins. The managing of both sides of these agreements can be complex. However, AEGIS Hedging can help you continue offering fixed-price strategies, maintain market competitiveness, and meet your customer’s needs.

Inventory Hedging

Is the value of your products in inventory below the current market price?

AEGIS Hedging can help you lower inventory costs with a consistent hedge program. In addition, AEGIS Hedging has risk analysis tools that can help you with scenarios and what-ifs to help you manage inventory effectively.

OTC Hedge Strategies

Are you entertaining adding OTC
type transactions to your hedge strategies?

Sometimes hedging with counterparties instead of exchanges with OTC hedges can more accurately represent your exposure. But unfortunately, there are more requirements around market data, MTM, and reporting.

AEGIS Hedging has all the market data required, can MTM your transactions, and can help you with complex risk management and financial reporting.

COOP Farmers Fixed Price Agreements

Do your farmer owners ask for fixed price agreements in the future that include terms, fixed prices, and even optionality?

Many COOP farmer owners have been looking to their COOP to maintain a stable cash flow for their products and require fixed price agreements in this volatile market to do so.

Keep your farmer owners committed and happy to stay competitive with your other local COOP's. AEGIS Hedging can help you offer agreements to all your owners, large or small, as well as longer terms and different strategies to navigate these volatile commodity markets.

Case Study

Dairy Cooperative Replaces Antiquated System with AEGIS Platform

A leading dairy cooperative was utilizing an antiquated risk system that was expensive, difficult to maintain and much of the processing was done manually outside the system in error-prone spreadsheets. AEGIS was able to bring their costs down significantly while providing more capabilities inside the AEGIS platform on newer technology. The coop is now integrated directly with its brokers and can manage trades across multiple broker accounts.

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Differentiators

AEGIS is the recognized industry leader because of our:

Unmatched Technology

We leverage technology to distribute information, improve execution, assess scenarios, and deliver actionable insights through web and mobile apps. And our investment is ongoing.

Best Execution

We tailor recommendations to specific budgets, underwriting, lender covenants, and investor objectives – and partner with over 40 counterparties to arrive at fair value.

Unique Insight

The scale of our platform, a team dedicated to studying global commodity and rate markets, and an unmatched client base allow us to offer a unique perspective.

Complete Focus

It would be easy to pursue compromising activities and fee structures. We are 100% focused on capital and cash flow protection through fixed-fee contracts. No conflicts. Ever.

600+

Entities

40+

Counterparties

75+

Sponsors and Lenders

15+

Years in Business