hEDGEpoint: Find out what areas the company works with

hEDGEpoint offers volatility protection products for the global chain of agricultural and energy commodities, and currency, always based on thorough analysis and market intelligence studies. From producers and cooperatives to traders and large industries in commodity markets, we live with our mission of empowering clients to manage market volatility and turning risk into opportunity.

With a personalized approach to business, we closely follow trends and strategically respond to market movements. To do this, we offer access to global markets and sophisticated financial products.

We specialize in the following segments:

• Agriculture: We operate with hedging products for the agricultural commodity chain of grains and oilseeds, cotton, coffee, cocoa, animal protein, sugar, and ethanol.
• Energy: We deeply understand the challenges associated with risk management in the energy market for commodities, such as oil and its derivatives, natural gas, and biofuels.
• Currencies: We offer hedging products which allow access to trading in a wide range of currencies.

We’re glad to explain all the details of how we operate in each of these sectors, highlighting the role of our professionals in developing effective hedging tools as you’ll see below.

The Agricultural Sector: Constant volatility demands risk management

Agricultural commodities are subject to many unstable factors, such as climate change, which can compromise or favor the harvest success. Moreover, the influence of political conflicts and economic changes also exists. The consequences? There are significant impacts on supply and demand for certain products, with repercussions throughout the global commodity chain.

Given this scenario, it can be differential to work with a partner that offers data analysis, insights, and risk management products. At hEDGEpoint, our team knows the field and its variables. They understand the characteristics of each agricultural commodity, such as soy, wheat, and corn. Thus, close relationships with clients are established, with a view to understanding the specific needs of each business.

Combining the knowledge of professionals with cutting-edge technologies, hEDGEpoint provides protection against risks related to prices and exchange rates that affect the agricultural sector. We customize financial and hedging tools according to business models and to each stage of the chain.

Hedging tools can be applied to any type of agricultural commodity as they concern the financial transactions carried out—not the product itself. These operations are recommended for anyone who’s subject to risk due to price fluctuations. From managers with limited experience to entrepreneurs who carry out large transactions, hEDGEpoint contributes to providing protection with a broad view of these complex contexts.

Combining market intelligence with sophisticated hedging products, we offer financial operations to protect the agricultural sector. Thus, we act to guard against price variations in agricultural commodity markets.

The Energy Sector: Innovations and Challenges

The energy market is characterized by variables that considerably influence commodity price formation. With the ongoing war between Russia and Ukraine, the global climate crisis, and the continuous adoption of ESG initiatives, there are numerous changes that can cause significant market swings.

Among the main energy commodities are oil and its derivatives, natural gas, and biofuels. Oil is extremely critical today, being used in various industrial activities due to its refining capacity. It’s also a non-renewable natural resource found in countries such as the United States, Saudi Arabia, and Russia.

Natural gas, on the other hand, is a form of fossil energy. Composed mainly of methane (CH4), along with small amounts of other light hydrocarbons, it’s a versatile source with less environmental impact than oil. Among its main applications, it’s used as vehicle fuel and to generate heat and electricity.

Several innovations are now coming to the energy market. Increasingly, there are more investments to use sustainable and less polluting raw materials. In this context, biofuels have gained relevance as a viable alternative to fossil fuels since they’re renewable, and produced from biomass or organic matter.

hEDGEpoint possesses a deep understanding of this entire scenario. We act with market intelligence and assess the most diverse factors that affect energy commodities. We perform financial risk management to identify potential exposures, with customized tools that help limit inventory fluctuations and protect against supplier price variations.

Currencies: A key alternative in risk management

hEDGEpoint is a company that routinely operates in financial markets, adopting tools to offer protection to customers in both the agriculture and energy sectors. Currency fluctuation is a reality faced by businesses involved in the commodity chain. With that in mind, we offer hedging products that give you access to trading in a broad range of currencies.

The foreign exchange market is the largest on the planet in terms of transaction volume and liquidity. Every second, the buying or selling rates of a certain currency can change. This volatility has risks that can harm investments. With hedging tools, it’s possible to protect your company from these currency fluctuations.

Thus, hedging operations act to protect prices, in full or in part, in relation to certain future exchange exposure against adverse price changes.

With the help of market intelligence professionals, the tools used help predict the movement of a currency on a specific date. In this way, it’s possible to compare instruments to find the most suitable, hence helping businesses to plan better.

Global Team Focused on The Client

The hEDGEpoint team has extensive global experience in commodity markets and a local presence close to many client operations.

With an organizational culture focused on people, we build a closer, more transparent relationship. We’re also fully committed to including ESG initiatives as part of our practices, exercising risk management that considers environmental, social, and governance aspects.

Our hedging products apply to agricultural, energy, and currency commodities, including:

• Access to the main exchanges in futures and options markets, focusing on agility and efficiency. The futures market involves the trading of standardized futures contracts, in which parties agree to buy and sell an underlying asset (such as commodities and currencies) at a specified future date, and at an agreed price in the present. Options trading involves trading options contracts that give the holder the right, but not the obligation, to buy or sell an underlying asset at a fixed price at a future date.
• Access to OTC transactions, creating a new environment for financial trading. OTC, or the “Over-The-Counter Market,” refers to financial transactions that take place directly between parties, outside a stock exchange or organized market. In this type of transaction, the parties negotiate and agree on the terms in a personalized way.

Talk to a hEDGEpoint professional today to learn more!