Perspective: Morning Commentary for December 8
Friday 2:31 PM
Managing renewable fuels risk
StoneX provides renewable energy traders with a competitive edge to lock in profitable margins.
Maximizing margins in the global renewable fuels market
Growing awareness around climate change has intensified decarbonization goals around the world, and the scramble to transition from fossil fuels to more sustainable fuels, such as renewable diesel and ethanol, has had a major impact on the global renewable fuels market.
The StoneX Renewable Fuels Group offers sophisticated expertise covering the entire spectrum of activities related to ethanol and biodiesel. Our deep understanding of inputs and outputs, our proprietary database, our historical knowledge and our boots-on-the-ground market intelligence provides energy traders with a clear competitive advantage.
Solutions for biodiesel clients
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.
- Risk management
- Futures and options
- OTC
- Financial and physical RINS
- LCFS credits
- Market intelligence
- Consulting and analytical services
- Feedstock services
- Financing
- Logistics
- Procurement
- Transportation
We work with biodiesel plants to establish risk strategies designed to protect and lock in margins for both integrated crushing biodiesel facilities as well as stand-alone biodiesel facilities
Solutions for ethanol clients
The ethanol market consists of extremely dynamic price alignments, and StoneX professionals constantly monitor for opportunities to lock in profitable margins and respond quickly to changing conditions.
- Risk management
- Futures and options
- OTC
- Financial and physical RINS
- LCFS credits
- Market intelligence
- Consulting and analytical services
- Feedstock services
- Financing
- Logistics
- Procurement
- Transportation
We work with ethanol facilities to diligently analyze the price of corn, feedstock, natural gas, denaturant, ethanol, distillers grain and corn oil in order to effectively establish and manage margins.
Increasing access to the renewable fuels market
StoneX recently became a member of the Nodal Exchange, which offers renewable fuel credits and pollutants contracts to support an increasing focus on corporate sustainability and carbon neutrality. Our clients can now access these environmental options and futures contracts, which span markets that include sustainable energy, carbon emissions, renewable fuels, and pollutants such as sulfur dioxide and nitrogen oxide. We are committed to helping our clients access the widest range of commodity-focused contracts to meet their environmentally focused goals.
Renewable fuels solutions
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. -
Liquidity servicesWe provide institutional, customized and highly cost-effective liquidity solutions to help you manage risk. -
Clearing & custody servicesStoneX pairs international clearing and custody service with top-tier customer service to tailor solutions for a variety of correspondents. -
Derivatives marketsNavigate the derivatives market confidently with StoneX's vast expertise.
FAQs
What are renewable fuels commodities?
Renewable fuels, also known as ecofuels, are produced from non-fossil renewable resources. Types of renewable fuel commodities include biofuels, biodiesel, and bioethanol.
How do you trade renewable fuels commodities?
Renewable fuels commodities are traded through RINS credits and trading. Each batch of renewable fuel that is created receives a unique identification number (RIN). The RIN becomes a usable credit and can be traded once released.
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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.