Commodities

Commodities have been subject to a significant price increases over the last decade. These higher prices, combined with increased volatility, mean companies should adopt a proactive risk management strategy.

We can help you instigate an active approach to monitoring and managing your company's commodity price risks that will enable you to control the effect that changing commodity prices have on your net result.

Using derivatives as a hedging tool can mitigate risk and create pricing predictability. Understanding the inherent risks when using derivatives to hedge is the key to proper risk management. When dealing with the commodity markets there are strategic differences in how you can hedge the underlying commodities. Certain commodity indices are, for instance, less liquid and, as such, option liquidity may not be available or attractive and swaps may therefore be the best choice.

At Nordea Markets, we have the competence to help you understand the risks involved prior to hedging commodities.

• A dedicated sales and trading team with specialist experience in commodities
• A wide spectrum of commodities experience with special focus on freight, oil and metals from simple swaps and forwards to complex option structures
• A dedicated team of commodity analysts continuously providing insights and recommendations on how to manage your commodity risk
• An experienced hand in establishing your finance and treasury policies
• In-depth pricing information, analyst publications and news available through the Nordea e-Markets platform