Foreign Exchange Risk Management
Strategies to manage currency risk and minimize the impact of volatility
If you are a CFO or part of your company’s treasury department, you know that managing commodity and foreign exchange (ForEx or FX) risk is critical to minimize earnings volatility. Thoughtful analysis and a defined plan can eliminate surprises, improve margins and market competitiveness.
There is no “one-size-fits-all approach” to managing foreign exchange risk. A medium-size industrial organization has different objectives from a large consumer packaged goods company. To find the best approach, our team works with you to understand your objectives and risk profile. We then provide solutions utilizing a full-suite of hedging tools, from swaps and forwards to tailored options and structured products.
At Cargill, we understand commodity producers and consumers. We can create currency-translated solutions, providing commodity and currency risk to be hedged simultaneously in a single instrument. For example, our team has worked with Brazilian mills hedging sugar and the Brazilian Real, Canadian livestock producers hedging cattle and the Canadian Dollar and Mexican poultry producers hedging soybean meal with the Mexican Peso. Our solutions can be utilized through more than 70 commodities markets and 24 currencies.
A reputation for strength and stability in customized FX hedging products
With more than 150 years of experience in commodities markets, Cargill is a strong, dependable counterparty, offering deep insight and expertise in volatile markets. Visit the corporate financial information page to review a five-year financial summary and credit rating information.
Contact us to learn how we can help build a ForEx risk management solution that is right for you.
Commodity trading involves risks, and you should fully understand these risks before trading. This information shall not constitute a solicitation to buy or sell futures or options contracts, or OTC products. Please review the full disclaimer.