The agricultural fertilizer industry is experiencing some of the most significant changes in its history. Manufacturer consolidations, transportation difficulties, historically high raw materials costs, and an increasingly volatile international market are all influencing the domestic marketplace as never before.
This recent uncertainty and high volatility has exposed risks that previously have been ignored or largely overlooked. Participants throughout the supply chain -- manufacturers, wholesalers, retailers, distributors, importer/exporters -- are all exposed to the risks Fertilizer Group in the FCM Division of INTL FCStone Financial Inc. has identified, tracks, and seeks to mitigate.
The Fertilizer Group can assist your company with sale and procurement strategies, commodity price-risk management for manufacturing input, production cost (including natural gas), weather risk management, logistical transportation solutions, managing transportation costs and foreign exchange solutions. Contact one of our risk management consultants today.
Fertilizer Crack Spreads
Using extensive research and historical data, the Fertilizer Group can help companies hedge gross processing margins. Using a specific ratio of natural gas and fertilizer financial instruments, a company may be able to systematically protect margins for a particular production period.
Commodity risk management entails lowering the risk associated with the price of commodities a company uses. Adverse commodity price fluctuations damage bottom line results; however, using commodity risk management strategies can mitigate much of this risk.
The Fertilizer Group has the capacity to offer many different risk management solutions across a variety of products using exchange traded futures, over-the-counter (OTC) products, or a combination of both in the following markets:
Contact a risk management consultant for more information on how your company can benefit from our expertise.
The trading of commodities and derivatives such as futures, options, and swaps involves substantial risk of loss and may not be suitable for all investors. Advisory services as well as the trading of futures and options is available through various subsidiaries including but not limited to the FCM Division of INTL FCStone Financial Inc. Public Disclosures for the FCM Division of INTL FCStone Financial Inc. The trading of over-the-counter products or swaps is available through subsidiary INTL FCStone Markets, LLC to individuals or firms who qualify under CFTC rules as an eligible contract participant. Please click here for the full disclaimer