Agriculture & Commodities
Our experts work with you to understand your commodity company, learning your business cycle to help you maximise export opportunities.
Minimise price fluctuations in futures contracts
You already use commodity futures contracts to manage your commodity business to manage risk, but are you accounting for the foreign exchange risk with selling those contracts? Without a matching currency risk management process, any positive steps you gain from using commodity futures could be eliminated by currency risk. At Corpay Cross-Border Solutions, we understand your business cycle. We can help your business grow by freeing up working capital Specifically, we help:
- Capture upside risk and protect against downside risk
- Smooth out short-term earnings volatility
- Manage your liquidity or solvency, and debt obligations
- Reduce your balance sheet risk for foreign currency assets and liabilities
- Insulate payments from downside while still retaining some upside exposure
- Preserve working capital with bespoke credit agreements that may reduce margin requirements
You're in good company
"Yeo Valley is one of the UK’s largest dairy producers. We have been using Corpay for our currency requirements over the past 12 months and I am happy to recommend their services. We met with our account representative who travelled to our premises and got a full understanding of our requirements, the challenges we faced and what our overall objectives were when it came to managing our currency exposure. Historically, we hadn’t hedged our EUR exposure but after evaluating the proposal from Corpay, we decided it was wise to mitigate our currency risk and execute forward contracts through a ‘market order’ strategy to target our budget rate when the market was below. This has benefited us significantly over the last 12 months, as we managed to trade significantly higher than the spot rates available through the forwards we placed. We have worked with our personal trader, alongside the continued support from our account rep and I am delighted to recommend their services."