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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 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 you need to achieve your financial goals.
Contact us to learn more about our hedging and trading capabilities in the financial and physical markets for commodities.
Learn how Wells Fargo Commodities* can help you with commodity price risk management.
 
* Wells Fargo Commodities is the trade name under which Wells Fargo conducts its commodity and commodity-linked businesses through Wells Fargo Commodities, LLC, Wells Fargo Bank, N.A and Wells Fargo Securities, LLC. Unless otherwise expressly agreed, (i) physical commodities are offered by Wells Fargo Commodities, LLC, (ii) swaps are offered by Wells Fargo Bank, N.A., a swap dealer registered with the Commodity Futures Trading Commission (“CFTC”) and member of the National Futures Association (“NFA”), and (iii) certain derivatives clearing services are offered by Wells Fargo Securities, LLC, a CFTC-registered futures commission merchant and NFA member. See https://www.wellsfargo.com/com/risk-management/clearing-services. The obligations of Wells Fargo Commodities, LLC are not guaranteed by Wells Fargo Bank, N.A. or vice versa.