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.