FCStone offers price risk management solutions in sugar, cocoa and cotton.

Sugar

The price of sugar is heavily dependent upon global supply and demand forces. Today the world’s sugar situation is even more complicated by the explosive emergence of the ethanol industry tied to the complex energy markets. Other factors affecting the pricing of sugar include global economic conditions, increased geo-political tension, trade liberalization initiatives, active index fund participation and increased energy prices. All of these factors combined have created an environment of fluctuating commodity sugar prices. This negatively impacts the sugar industry’s ability to maintain their budgets, and achieve their margin and profit objectives.

Working with FCStone to employ prudent risk management procedures, companies can more effectively manage their commodity price risk and successfully impact their profit margins. FCStone Sugar and Ethanol Consulting Group offers unique market intelligence and innovative financial solutions to address commodity price volatility. With a history dating back over 80 years, FCStone brings unparalleled experience to help sugar industry players mitigate volatile price risks. Through the Integrated Risk Management Program (IRMP^®), FCStone provides companies with the solutions, tools and platforms necessary to meet budgets, stabilize price inputs and ultimately secure margins. 

Cocoa

The cocoa market, as with any other agricultural commodity, has been impacted by fundamental and financial factors which resulted in considerable price volatility over the years.

Besides the normal factors that usually affect crop productivity, cocoa sub-product demand (i.e. chocolate) is influenced by world economic activity. Demand for such products can be reduced or increased, depending upon household income, much more than for the commodities representing the basis of human nutrition such as grains and sugar.

Economic and crop instability in its major producing country, Ivory Coast, speculative and index fund activities, and exchange rate volatility also affect price.

The FCStone Cocoa Integrated Risk Management Program (IRMP) aims at assisting cocoa producers and processing companies in understanding factors that might affect price, as well as providing tools and strategies to protect their bottom-line results from adverse price movement and volatility. Contact us today.

Cotton

The FCStone Fibers and Textiles division provides risk management services, consulting, and news and information for cotton, fibers, textiles and the apparel market.  Click here to learn more about our fibers and textiles capabilities.