Regardless of how fast retailers turn their inventory or whether they are selling branded or unbranded fuel, they have two significant risks: at-the-pump margins shrinking due to rapid price increases and declining inventory values as prices move lower.
The FCStone, LLC energy group helps C-Stores protect retail margins and inventories in today’s volatile energy market through sound risk management strategies. FCStone’s Risk Management Consultants offer objective advice on choosing the best risk management instruments and cost-effective strategies along with rationales regarding the recommendation and the risk vs. reward profile. Retail margins are also increased by purchasing fuel in the most economic fashion.
The energy group’s expertise in the futures and OTC* market coupled with experience in the physical cash markets provides our customers with unparalleled service and information. From helping to negotiate physical contracts to scheduling and shipping barrels in the pipeline, the energy group can handle many of your supply side needs.
Some of our services include:
- Hedging C-Store inventories
- Hedging the cost of increasing credit card fees
- Complete analysis of current and proposed supply contracts
- Negotiating through put agreements and new supply contracts
- Assisting in spot market purchases
- Pipeline shipping and scheduling
- Position tracking - daily mark-to-market statements and Portfolio manager - our online hedge record program.
- Assisting in the development of corporate risk management policies for petroleum products.
Education is one of the most important aspects of the relationship with our customers.
FCStone customers have access to:
- Energy risk management seminars offered throughout the year tailored to meet the needs of jobbers, retailers, and end-users of energy products.
- On-site hedging seminars custom tailored to your operations
- Daily market commentary and weekly reports on market fundamentals
- Proprietary market research and Historical studies
Trading in exact increments*
In the past, customers were limited to trading in 42,000 gallon increments which made it difficult for marketers to effectively manage their risk. FCStone now offers customers the ability to hedge purchases and sales in any increment for multiple products.
*OTC products are traded through INTL Hanley, Inc.