Crude Palm Oil Hedging & Risk Management Solutions

We help clients offset commodity crude palm oil price risk, manage commodity price volatility and enhance operating margins using customized financial tools (futures contract).

Hedging is a form of risk management strategy that mitigates risk exposures. For businesses who are connected with the commodity markets, this usually means ‘price’ risk associated with the volatility and movement up or down in the price of commodity. In Malaysia, crude palm oil (CPO) producers & commercials are deeply concerned with how CPO price directly impact their financial performance.

An adverse crude palm oil (CPO) price movement directly affects company’s margin and bottom line.

Therefore, adopting an effective CPO risk management hedging strategy is essential for organizations to stay ahead from the crowd.

Commodity price risk is the chance that commodity prices will change in a way that cause economic losses. Increase in commodity price is a risk for commodity buyers/CPO consumers; while decrease in commodity price is a risk for commodity sellers/CPO producers.

It does not really matter whether you are a CPO buyer or a seller, we can help you reduce exposure to commodity price risk with a customized hedging program that uniquely suits your organization’s risk profile. We help clients manage that underlying risk to protect and enhance operating margins or per acre P&L results. So that they can relax and stay focused on the rest of their business.

Any entity’s whose margin or operating results are impacted by increasing or decreasing crude palm oil (CPO) price and/or price volatility should consider hedging. Examples of sectors with CPO price risk:

• CPO producers (Palm oil milling)
• Palm oil refineries
• Oleochemical manufacturers

We’re about exploring and educating our clients on the availability and implementation of price risk management (hedging) tools that allow you to manage your commodity price risk and protect your profits.

If you are not sure whether your organisation required a risk management hedging program, we are ready to assist you by performing initial assessment for your organisation. This assessment allows you to better understand whether your organisation has the needs and capabilities to implement an effective risk management hedging program to support the achievement of organisation’s strategic objectives and strengthen your bottom line!

We strive to provide effective hedging solutions, covering trading desk until back office, that are suitable and customised for your organisation.
Please do not hesitate to contact us at 016-433 9082 or email: [email protected].