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. StoneX 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.
StoneX Group 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.