We work with biodiesel plants and end users to establish risk strategies designed to protect and/or lock in margins for both integrated crushing biodiesel facilities as well as stand-alone biodiesel facilities. INTL FCStone has the tools and personnel to manage margins in the biodiesel industry through its in-depth market intelligence and broad based cash market knowledge in all sectors of the processing cycle. We use a broad range of risk management tools to stabilize operation margins, expand merchandising efforts, and mitigate multiple risks in volatile markets. We apply astute risk-management strategies and sound recommendations to help customers navigate highly volatile markets and concentrate on running their business.
INTL FCStone Inc., through its affiliates, also offers added services such as feedstock procurement, transportation, logistics and financing in order to help customers maximize their operations. FCStone Merchant Services has a program called Feedstock Financing that helps biodiesel producers run at capacity and reduce their working capital requirements. In this program, FCStone Merchant Services purchases feedstock from various suppliers and sells this feedstock to the biodiesel plant. The biodiesel plant sells ASTM 6751 spec biodiesel to buyers which have been vetted for creditworthiness by FCStone Merchant Services. FCStone Merchant Services takes assignment of the biodiesel sales contract and the buyer wires payment into a joint account controlled by FCStone Merchant Services and the biodiesel plant. FCStone Merchant Services deducts feedstock cost plus a service fee from sales proceeds and forwards the remaining funds to the biodiesel plant.
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