Controlling commodity costs with StoneX

Clients around the world choose StoneX (NASDAQ: SNEX) for our high-touch support, high-level expertise and seamless execution. With our roots in commodities hedging dating back 100 years, we have a “boots-on-the-ground” connection to nearly every publicly traded commodity in the world.

In addition to providing value to our clients through consulting and risk management services, we offer comprehensive execution solutions through exchange traded futures and options, OTC, and physical procurement. 

Learn more about some of the services we offer clients below.

Consulting

Our risk management consultants don't just study the markets -- they live it on a daily basis. We offer a full suite of consulting services for clients determined to control their commodity costs and work directly with you to drive results.

We believe that education is the key to a business’s success. We help businesses stay on top of the markets, and have awareness and access to the tools available to upgrade their risk management.

Comprehensive risk assessment

Another way we help our commodities clients is with a comprehensive risk assessment. StoneX conducts a full commodity risk assessment of your business to help you protect against price volatility, prepare for market swings and identify possible cost saving opportunities.

We get to know your business and work directly with you to:

• Identify what the goals and objectives are for your organization (i.e. protecting margins, meeting your budget, reducing volatility)
• Assess and reference industry best practices to align your program
• Understand how your industry peers are addressing their own commodity price risk
• Detect any existing gaps in your program and how to bridge those gaps effectively
• Identify the analytical tools that should drive your hedging decisions such as budget targets, historical value, fundamentals, technicals, and seasonality.
• Identify hedge parameters and show you what tools your business can use to hedge (i.e. futures, options, customized OTC products)

If you’ve experienced costs that are higher than expected, we provide a methodical plan to help protect your business using real data and decades of expertise in commodity risk management. You can add structure to your purchasing strategy with definitive parameters for when you need to take action to secure the best price.

If you believe your business could benefit from a risk assessment from StoneX.

Policy development

Using 30+ years of experience and understanding of industry best practices, our risk management experts help clients design and implement hedge policies that provides a roadmap for uncertain market environments.

When it comes to designing a strategic hedge program, it’s critical to follow industry best practices. Our team defines the underlying methodology, and asks you key questions, such as:

• What analytical tools are you using to make your purchasing decisions and to take advantage of price opportunities?
• Are you buying in advance or in the spot market?
• Are you considering options strategies such as calls?

These questions are designed to tailor the program to your specific business strategy. In order to maintain the success of your strategy, we hold monthly meetings to go over market conditions and new potential hedging opportunities, and make sure to check in with our clients to ensure your exposure to price shocks is limited.

If you’re interested in how StoneX can help you develop a hedge program that’s unique to your business.

Execution

In addition to consulting and advisory, we offer a full range of markets and financial products that allow clients to control costs and maximize margins.

• Futures & options
• OTC swaps & structured products
• Physical commodity brokerage
• Retail natural gas & electricity

Risk Software

Our Know-Risk software gives procurement and finance professionals a transparent view of their physical purchases, financial positions, and the ability to run powerful budgetary reports.

• Physical/financial deal capture
• Mark-to-market & variance-to-budget reporting
• Stress & what if scenarios
• Hedge program tracking

To learn more about our comprehensive service offering and how we can help your business.