A physical commodity deal is more than a price. Title has to change hands cleanly, the cargo inspected and insured, freight and storage booked, payment structured so neither side is exposed. Usually across two or three jurisdictions.
We check who you're dealing with, put the contract and documents together, coordinate carriers, storage operators and inspection agencies, and stay with the transaction until the cargo is delivered and paid for.
For companies exposed to commodity prices, we can also support the analysis and structuring of hedges. Our quantitative work helps compare how different structures respond when market conditions change.
We work on gasoline, diesel and natural gas cargoes, covering the contract, the freight and storage arrangements, and the documentation. Counterparties are screened for KYC, source of funds and sanctions before a transaction proceeds.
We structure gold transactions for qualified counterparties, working with licensed refiners and assay partners. Our due diligence follows OECD and LBMA guidance, and we require documented origin in every case.
We work on fresh produce, mainly avocados out of Mexico. This covers the cold chain, packing and certification, export documentation, and coordination with the buyer through to delivery.
There is no public reference price for avocados, which means buyers and sellers negotiate without a common benchmark. Agro Xchange is a project to publish one, based on a documented methodology. Trading against that price is a later stage and would require the appropriate licences. The platform is still in development and is not open. Nothing here is an offer. agro-xchange.com
A company with physical commodity exposure does not always face the same risk as the headline market price. The timing of the exposure and the hedge can differ, and the instrument used may not move exactly with the physical position.
We help companies compare possible hedging structures and understand how the combined position behaves when market conditions change.
Where options are involved, the analysis also shows the cost of protection and the trade-off created by any premium received.
Show which commercial exposure the hedge is intended to offset.
Compare alternative structures against the same underlying exposure.
Test how the position behaves when the market moves away from the base case.
Identify the risk that remains when the hedge does not move perfectly with the physical position.
Present the result in a form that management can review without having to reconstruct the analysis.
We agree what the deal is, in confidence, and confirm your status under FinSA Article 4.
KYC, beneficial owners, source of funds, origin papers and sanctions screening. All of it before anything moves.
Contracts and transaction documents are coordinated with the relevant licensed counterparties. Where hedging forms part of the mandate, we compare the available structures before any implementation takes place through the appropriate authorised party.
We stay on the deal through documents and settlement. Licensed counterparties do the licensed work.
