Hedge (HMS)

Owned by Brendan Hebert
Last updated: Jul 24, 2023
2 min read

cmdtyView Hedge Management was designed to help facilitate grain marketing and alleviate the risks associated with cash transactions between producers and merchandisers. The basic premise of Hedge Management is to link cash and futures orders so that any time there is price movement on the cash offer, the hedge order will be adjusted dynamically allowing the elevator to remain fully hedged. In addition to auto adjusting hedge orders, cmdtyView Hedge Management also provides a tracking mechanism whereby the elevator can view their current futures and cash positions across different commodities, expirations and delivery dates.

 

cmdtyView Hedge Management allows merchandisers to:

  • Automatically accept offers and immediately create a pre-hedge GTC futures order

  • Dynamically adjust all open GTC orders when Basis changes

  • Dynamically adjust GTC futures orders when a producer(s) changes their offer

  • Bundle offers from producers below 5000 bushels into hedgeable ‘tail’ quantities

  • Allows merchandisers to unwind filled hedges when grain ownership changes

  • Dynamically push filled orders for both cash and futures transactions to their ERP which allows them to create a Daily Position Report that summarizes all of the above cash and futures positions, assets and liabilities plus owned inventory, farmer owned inventory and more

 

 

There are four panels that make up the workflow for cmdtyView Hedge Management:

Offer Manager - Create new and view all current cash grain offers using the Offer Manager panel.

Bid Manager - Create new and view all current bids by location and commodity. Bids created and visible here are public facing to producers

Cash Trade - Producers or merchandisers on behalf of the producers can place orders to sell cash grain to an elevator’s bid

Hedge Balances - The Hedge Balances window shows a list of bids grouped by commodity and delivery month along with the current long or short position in the cash market

Hedge Balances Details - View each cash and futures transactions' details by commodity and delivery month. Track the individual unhedged ‘tails’ position here as well

 

For more information on cmdtyView Hedge, please click here to request a trial and speak with a sales representative.