Markets
Manage your interest rate and commodity price risk with a Markets team that specializes in food and agriculture. A sound, well-reasoned risk management strategy can give your farming operation a competitive advantage.
Commodity Price Hedging
Rabobank offers a wide range of Over-The-Counter (“OTC”) hedging tools to assist our clients with commodity price risk management.
Rabobank’s commodity hedging products can help reduce the volatility and uncertainty associated with fluctuations in commodity prices. In addition, these OTC tools can eliminate the risk of margin calls and reduce the counterparty risk inherent in forward contracts with local buyers or sellers.
Our Markets team has specialized knowledge of products that can be used to actively manage commodity price risks. The range of commodities covered includes: corn, wheat, the soybean complex, milk, live & feeder cattle, lean hogs, sugar, cotton, diesel, heating oil, natural gas and others.
Products include:
- Commodity price swaps
- Commodity price options
Interest Rate Hedging
Our Markets team has specialized knowledge of products that can be used to actively manage the risk of rising interest rates.
For many borrowers, the best alternative may not simply be using traditional fixed rate loans to finance real estate or paying a variable rate of interest on operating lines. The Rabobank Markets team can help you develop a customized plan that meets the needs of your agribusiness.
Products include:
- Interest rate swaps – For borrowers looking for an alternative to traditional fixed rate loans or wishing to lock in SOFR on a variable rate loan
- Interest rate options – Including SOFR caps and collars
Risk Management
The primary goal of risk management is to protect the value of your farming operation from negative price fluctuations and market risk, allowing you to focus on what you do best…running your agribusiness.
Rabobank offers a range of products and solutions to help you manage the risks associated with fluctuations in interest rates and commodity prices. Our relationship-oriented approach leads to a meaningful dialogue with you, so that you can make an informed decision on how best to manage your interest rate and commodity risk.
Rabobank can help you couple crop insurance products to manage production risk with Markets products to form an agricultural risk management strategy that suits your farm business. With a sound risk management strategy, you’ll be better prepared to protect your farm income from market risks and risks from natural disasters and weather.