Objectives for Managing Commodity Risk

Just as commodity prices can move in your favor, they can also turn against you. Whether your business produces or uses commodities, the objectives for managing commodity price risks are the same. In both circumstances, you can minimize or eliminate the impact that a change in prices can have on your company’s financial stability.

Commodity hedging programs can potentially help your business:

  • Improve the accuracy of forecasted revenue and expenses
  • Lock in margins to meet budget and earnings expectations
  • Increase financial flexibility and lower the cost of capital
  • Develop a growth strategy with price certainty
  • Maintain financial health by protecting against commodity price risk
  • Reduce volatility to equalize cash flows
  • Protect value and investment in commodity-linked inventory

Working together with you, our commodity specialists can provide your business with the hedging strategies and products we believe will potentially help you to achieve your financial goals.

Learn how Wells Fargo Commodities can help you with commodity price risk management.

The transactions described herein involve potential costs and risks. Please review roles, responsibilities, and risks.