Perspective: Morning Commentary for December 8
Today 2:31 PM
Managing corn price risk
Let seasoned StoneX professionals design and deliver a comprehensive suite of risk management solutions to address your business needs and achieve your business goals.
Corn solutions
At every stage of the corn production chain, participants face the risk of adverse price movements caused by a multitude of uncontrollable factors. Corn futures and options, and over the counter products provide a means to manage this risk and take advantage of potential profit opportunities.
Corn hedging
We design and execute hedging programs built on proven commodity risk management principles for corn merchandisers and originators and are not speculatively oriented. Futures and options, and over the counter products are used to assist grain marketing by providing opportunities to retain margins and manage risk.
Commodity risk management
Our award-winning consultants understand both the futures and the physical markets. To limit risk and uncertainty and improve margins and bottom-line results, we will construct a risk-management program tailored to your company's needs, then work closely with you to execute it.
StoneHedge® Merchandising System
Streamline origination. Automate offers. Simplify hedging. Our web-based merchandising system allows commercial grain customers to automate hedging and incorporate cash bids, stream quotes, offer/order initiation and manage hedges through one easy-to-use platform.
Clearing & execution
Our suite of institutional-grade futures clearing & execution services delivers broad exchange access and transparency to clients worldwide.
OTC products
Over-the-counter (OTC) products deliver benefits like exchange-traded futures and options. Still, they can offer customizable terms (e.g., non-standard quantities, strike prices, expiration dates, etc.) that align more closely with your unique hedging needs.
Managed futures
Each of our team members has years of experience and working relationships with top traders and emerging managers. We utilize in-depth statistical research to help find the right combination of managers for a portfolio and provide reports to assist you in evaluating these traders daily. Selecting a manager is ultimately the client's choice.
Integrated Risk Management Program
StoneX’s Integrated Risk Management Program (IRMP®) is a comprehensive, hands-on process to help companies identify their total commodity risk and develop integrated strategies to mitigate that risk. Managed by our expert consultants, the program helps companies protect their margins against price volatility and enhance their bottom line in six steps:
Consultation
We meet with your management team to gain an understanding of your business and its commodities exposures – from the goods your company directly purchases, produces and processes, to variables like energy and financial considerations.
Deep Analysis
Drawing on deep market expertise and our extensive proprietary database, we conduct an analysis of your company’s historical pricing data and current/projected global supply-and-demand situations for all the commodities you deal in.
Comprehensive Risk Review
Based on our analysis, we provide a comprehensive review of your risk exposures and discuss what measures your company may currently have in place to mitigate your risks. We also discuss your risk tolerance across these commodities.
Strategy Development
Using input from your risk review, we develop a comprehensive risk management strategy of innovative and proven financial tools tailored specifically to your commodity exposures and risk preferences.
Implementation
Once you approve, our consultants will execute the program on your behalf, including conducting daily market analysis and engaging in necessary trading through StoneX’s global resources.
Dynamic Reporting and Adjustments
After implementation, we provide meticulous, monthly and year-end reports detailing the program’s impact on company financial performance. We also continually monitor and adjust the company’s financial picture as market conditions change.
Technology & clearing
We work with investors, trading advisors, custodians, portfolio accounting groups, and fund administrators to provide customized reports and files for all activity, open positions, and money balances. Dedicated Customer Service groups allow 24-hour account access via your MyStoneX portal.
Trade Allocation
A comprehensive module for auto-allocation that offers the flexibility to break down trades for both internal accounts and outside firms.
Automated Average Price System
Allows easier, more equitable distribution of trades among your customers on execution at multiple prices.
My.StoneX.com portal
Our web-based system provides clients with an easy way to interact with StoneX around the clock.
Physically traded products
StoneX offers clients financing and trade facilitation to provide working capital for commodity inventory and hedge margin. Our physical trades provide forward pricing and supply chain management services, allowing clients to manage their commodity commerce without tying up valuable resources.
Inventory financing
We offer inventory sales/repurchase, transactional finance, processing, and tolling arrangements for clients. We can also provide financing that is incremental to your established banking relationships. We aim to help clients optimize their fixed assets, such as storage facilities, terminals, pipelines, and processing facilities.
Specialized foreign exchange & payments
Our capacity includes foreign exchange services to international aid and development organizations, UN agencies, NGOs, religious entities, governmental agencies, multinational corporations, and financial institutions in over 175 countries, with expertise in exotic currency payments and payments to the developing world.
Why StoneX?
StoneX risk management consultants have in-depth expertise in the supply-and-demand situation for specific commodities, access to our extensive proprietary database and detailed historical knowledge, and substantial experience creating and using innovative risk-management tools.
We've spent decades developing and designing financial solutions, tools, and platforms to help companies manage risk, meet budget restrictions and reduce market volatility. Let our specialist help you grow your bottom line.
Our clients
Our Grains and Oilseeds Group is here to help educate and provide the tools and services necessary to understand risk and the risk management process. Based on your needs and risk tolerance, we will design a program that reflects your objectives.
Corporations & cooperatives
We work with companies worldwide that originate and process soybeans, wheat, and soybeans; grow or process sugar, coffee, dairy, lumber, and cotton; and produce energy products from crude oil or ethanol. We provide risk management, hedging, and complete marketing services to traders, processors, manufacturers' elevators, and end-users.
Our financial tools manage risk, use the market to limit volatility, capture and retain quality and specific-trait advantages, control input costs, protect inventory value, and work toward the goal of enhancing margins.
Corn producers
At StoneX, corn producers gain access to global reach, local expertise, grain marketing strategies, and powerful margin-tracking tools. As one of the largest U.S.-based grain brokerage firms, we partner with producers on five continents to monitor market fluctuations and help you capitalize on all possible opportunities.
Food & beverage industry
All food and beverage companies face commodity price risk, but each requires unique solutions. We leverage extensive market access and deep expertise to help food processors, manufacturers, and consumer packaged goods companies overcome those risks.
Boots on the Ground: Grains (US)
Visit KJA Family Farms with StoneX’s Kyle Schrad, Vice President of Global Dairy and Food Operations, FCM-Division, as he discusses how lessons learned as a boy working on his family farm inform his understanding of how a boots on the ground perspective fosters trust.
Visit KJA Family Farms with StoneX’s Kyle Schrad, Vice President of Global Dairy and Food Operations, FCM-Division, as he discusses how lessons learned as a boy working on his family farm inform his understanding of how a boots on the ground perspective fosters trust.
Explore our services
StoneX offers a wide variety of customized financial services to help you meet your strategic objectives.
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Commodity risk productsMitigate your exposure to commodity price volatility with StoneX's strategic risk products. -
Physical commoditiesStoneX’s combines deep market expertise and risk management analysis to help clients increase profitability. -
OTC tradingTake advantage of StoneX's OTC trading expertise for more customized hedging options. -
Derivatives marketNavigate the derivatives market confidently with StoneX's vast expertise.
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FAQs
What are corn futures?
Corn futures are CFTC-regulated, exchange-traded contracts on the Chicago Board of Trade (CBOT), and among the top 5 most traded commodity futures.
Why trade corn futures?
Corn futures provide investors with a way to hedge against inflation concerns. Corn futures are traded on the Chicago Board of Trade and priced in U.S. dollars, so fluctuations in the U.S. economy will affect their pricing. Price speculation is another use for corn futures since changes like crop output because of weather, geo-political situations, supply and demand changes, fuel market fluctuations, and governmental policy will cause price swings.
What industries use corn?
The most significant use for corn is for processing livestock and poultry feed. Corn also serves as an essential ingredient in many food products for human consumption - corn oil, margarine, corn starch, and corn sweeteners. Nonfood uses include alcohol production for ethanol fuel, liquid absorption agents, and paper product adhesives.
Why is corn traded?
Corn is the most widely grown crop across the United States, and corn futures contracts are the most active market in grains and oilseeds.
How are corn futures traded?
Corn futures are traded electronically at 5,000 bushels per contract. An account approved to trade futures is required to trade corn futures.
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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 of StoneX Group Inc. including but not limited to the FCM Division of StoneX Financial Inc. Public Disclosures for the FCM Division of StoneX Financial Inc. The trading of over-the-counter products or swaps is available through subsidiary StoneX Markets LLC to individuals or firms who qualify under CFTC rules as an eligible contract participant. Please click here for the full disclaimer.