Commercial Risk SolutionPrimary Focus: Margin Protection & Spread Management
Margin Protection & Spread Management
"Evaluate the relationship between input costs and selling prices."
Protecting processing, conversion, or crush margins when a company buys raw inputs and sells processed outputs.
Physical Risk Exposure Problem
Compression of processing margins due to raw material costs surging while finished product prices lag.
Governed Hedge Outcome
Locked conversion spread ensuring processing profitability regardless of outright price levels.
Implementation Breakdown
Spread Examples
- Soybean Crush (Beans vs Meal + Oil)
- Refining Crack Spread (Crude vs Diesel/Gasoline)
- Cattle Feeding Margin (Feeder + Corn vs Live Cattle)
Target Commercial Participants
Processors, Crushers, Refiners, Fabricators
Advisory Engagement
Build a Custom Margin Protection & Spread Management Strategy
Speak with our commercial risk advisors to evaluate your physical cash positions and structure governed hedges.