Hedging commodity risk

Made-to-measure solutions and products

After analysing your needs, we will advise you in your risk management. We will draw up simple but made-to-measure products to manage your risks on all commodity markets.

Hedging agricultural commodity risk

(An offer reserved for eligible corporate clients of the Crédit Mutuel and CIC networks)

Fluctuations in cereal prices are characterised by their abruptness and amplitude during a harvest. Historical high volatility on the milling wheat contract leads to daily price fluctuations of around EUR4 per tonne which impact companies’ operating margins. This exposure to prices can be managed by cereal buyers and sellers. Préviris Entreprise provides access to the Euronext Paris futures market (MATIF) to hedge this risk.

The principle

Préviris is an offer that enables agro-related businesses that are clients of Crédit Mutuel Alliance Fédérale group to access the MATIF commodity futures market while holding an account at the Crédit Mutuel or CIC branch. The aim is to manage the risk of fluctuating prices (increases or decreases). Short option selling and speculative strategies are not permitted. A futures market account is opened for each commodity traded. Accessible commodities are milling wheat, corn and rapeseed.

Mode of access

• Préviris Entreprise enables you to access Euronext Paris’s commodity futures markets through your remote banking portal. Trading is carried out on futures contracts and options. Maximum holding positions authorised by the group’s Commitments committee defined according to the volume of commodities purchased or traded, and capital.