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- Commodity Hedging
Commodity price risk, managed with the same discipline as FX
Commodity Hedging applies ATI's exposure, policy and coverage framework to commodity prices. A business that buys fuel or energy sees forecast and hedgeable volumes, cover by delivery month and coverage against a policy corridor, alongside its currency program.
Vantry ATI TTTreasury team How much of next year's fuel cost is protected?
Energy costs are often hedged with less structure than currency: a few swaps placed when prices look attractive, with no view of how much of each month is covered or what the uncovered part could cost.
- Forecast exposure and the hedgeable share by delivery month
- Executed coverage against a policy corridor, month by month
- Hedge planning and hedge layers, with the cost at risk for each layer
- Indicative MTM of hedges against the forward curve
- Basis between the physical exposure and the hedging benchmark
- Forward curves and price scenarios
What the module covers
Benchmarks
Energy benchmarks including crude oil, heating oil and diesel, gasoline, natural gas and jet fuel, with selected agricultural and livestock benchmarks.
Instruments modelled
Futures, swaps, caps, floors, collars and spreads, and European options.
Policy framework
The same exposure, layer and corridor structure used for FX, so commodity and currency programs report the same way.
Prepared with our treasury team
Commodity analysis is prepared by our treasury team and reviewed with you. Clients do not run it themselves in the portal.
Please note. The module supports analysis and planning; it does not book trades. Market data is delayed, and valuations are indicative and not for settlement.
The same framework, applied to FX
Discuss your commodity exposure
Talk to our treasury team about fuel and energy costs alongside your currency exposure.