While your focus is production, ours is risk management. Producers are able to utilize the commodity markets in a variety of ways. There are many different strategies to be used, and no one strategy fits all. No two producers have the same operation, goal or budget. Depending on the goal, we provide price protection through the use of futures and options which reduces exposure to market risk.
A majority of our producers utilize options as price protection because it provides the protection at an up-front cost without margin calls. Knowing their cost of production, we can work with each individual to determine a suitable strategy. The benefit of such protection is the ability to incorporate the cost into a producers budget to give them the peace of mind that their operation is protected.