Commodity risk management 
wheat field 
 

Manage your risk

Rabobank’s risk management facilities can help reduce, or even remove, the volatility and uncertainty associated with fluctuations in commodity prices and currency movements, so you can plan ahead and budget with greater confidence. 

 

'Over the counter' commodity products

These products are tailored to your specific needs and are cash settled. They offer clients with medium to large production, the ability to manage price risk independently of physical commitments and add flexibility to marketing programs.

 

Commodity price swaps and options 

Commodity price swaps allow producers and purchasers of agricultural commodities to fix prices for future production or accumulation requirements.

 

Commodity price options allow producers and purchasers of agricultural commodities to protect against unfavourable price movements that may affect future production or accumulation needs. Options retain some flexibility in that the purchaser of an option can take advantage of better prices should they occur. A premium is payable upfront.

 

'Over the counter' products are offered in the following commodities 

Commodity

Maximum duration

Minimum individual amount

Referenced to

Currency availability

Wheat

3 years

100 metric tonnes (mt)

CBOT/KCBT

AUD and USD

Canola

3 years

100 mt

ICE

AUD and CAD

Corn

3 years

100 mt

CBOT

AUD and USD

Cotton

3 years

100 bales

ICE 

AUD and USD

Clients who enter into 'over the counter’ commodity products should be aware of 'basis risk' that exists between the hedging instrument being used and the physical price of the commodity they are intending to protect. We strongly recommend that clients seek external risk management advice before using these products. 

 

These products are issued by Rabobank Australia Limited ABN 50 001 621 129 AFSL 234 700. Consider the relevant Disclosure Documents along with your personal objectives, financial situation and needs before making any financial decisions. Fees and charges may apply. 
 

For more information

Call us on 1300 30 30 33, email us, or talk to a Rural Manager at your nearest Rabobank branch.

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