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INTL FCStone Inc. to Issue Two-Part Paper Examining Commodity Price Risk Management for the Food Industry

June 9, 2016

 

NEW YORK, NY -- (Marketwired) -- 06/09/16 -- INTL FCStone Inc. (NASDAQ: INTL)

  • Part I to provide complete commodity price risk exposures as a prelude to the Food Industry Forum'sMarket Outlook Forum
  • Part II to present hypothetical case studies demonstrating proactive risk management

INTL FCStone Inc. (NASDAQ: INTL), which through its subsidiaries offers diversified global financial services delivering execution and advisory services in commodities, currencies, and securities, today announced that in conjunction with its Food Industry Forum event on July 19-21 in Chicago, IL, the Company will release a two-part series of papers providing insight into effective commodity price risk management. The series will focus on the total price risk exposure that companies in the food industry face, and how proven risk management strategies can not only help mitigate that risk, but also create competitive advantages and improve margins.

Part I, to be released in early July, will provide a complete picture of commodity risk exposures that companies in the food industry must manage effectively. Many companies in the industry rightly focus on the price risk inherent in their primary commodity ingredients and on some of the inputs required to produce their goods. However, far fewer companies take steps to mitigate the risks to profits posed by changes in energy prices, domestic and global interest rates, and international currency values.

Richard Jelinek, Vice President, Global Education at the FCM Division of INTL FCStone Financial Inc., commented, "Volatility in commodities can wreak havoc on everything from a company's logistics systems to its supply chain to its financial functions. This paper will catalogue these various risk exposures, look at price volatility in these key commodities over the past 10 years, and provide some insight into price risk factors for the remainder of 2016 -- as a prelude to the Food Industry Forum's market outlook programming."

Part II, to be distributed at the Food Industry Forum on July 19, will use historical price data in select commodities to present a number of hypothetical case studies that demonstrate the potential benefits of a proactive risk management approach. Markets hold endless surprises -- from unexpected commodity rallies to natural disasters to sudden political upheavals. Events like these simply cannot be predicted with any consistent success.

Mr. Jelinek continued, "Part II of this paper will demonstrate how some of the risk management principles and strategies outlined as part of the Food Industry Forum's education programming can help companies take the guesswork out of the markets and lock in prices on key commodities -- thus better inoculating themselves against the ravages of volatility. At INTL FCStone we strongly believe in education, and at our inaugural Food Industry Forum we will seek to provide attendees with further information and delve into key market issues they can use to manage commodity price volatility that will help protect profits."

Programming at the event will inform attendees on risk management fundamentals and commodity market outlooks, as all content is developed specifically to educate market leaders on how to protect margins. Purchasing decision makers as well as senior management will come away with the knowledge and confidence to help their companies guard against volatility and drive profits. The Food Industry Forum is hosted by INTL FCStone Inc. and sponsored by CME Group & Thomson Reuters and will be located at DePaul University, Chicago Il, in the DePaul Center: Student Center - Loop Campus.

Sessions of note include:

  • Importance of Price Risk Management
  • Introduction to Hedging with Futures
  • Introduction to Commodity Options
  • Ingredient Performance Strategies
  • Introduction to OTC Swaps & Structures Products for the Food Industry
  • Interest Rates & Currencies - Food Industry Application
  • Energy Use in the Food Industry
  • Global Economy: Impact on the Food Industry
  • Covering Packaging Price Risk

Please visit http://intlfcstone.cvent.com/events/food-industry-forum to view a full updated agenda.

INTL FCStone, through its subsidiaries, offers commodity price risk management programs that help companies not only survive but also thrive in today's difficult commodity environment. The Company's risk management consultants have in-depth expertise in the supply and demand situations for specific commodities, access to an extensive proprietary database and detailed historical knowledge, and substantial experience in creating and using innovative risk-management tools.

About INTL FCStone Inc.
INTL FCStone Inc., including its subsidiaries, is a leader in the development of specialized financial services in commodities, securities, global payments, foreign exchange and other markets. Our revenues are derived primarily from financial products and advisory services that fulfill our clients' real needs and provide bottom-line benefits to their businesses. We create added value for our clients by providing access to global financial markets using our industry and financial expertise, deep partner and network relationships, insight and guidance, and integrity and transparency. Our client-first approach engenders trust, and has enabled us to establish leadership positions in a number of complex fields in financial markets around the world.

Further information on INTL FCStone is available at www.intlfcstone.com.

INTL-G

Media Contact
Jay A. Morakis
M Group Strategic Communications (for INTL FCStone Inc.)
+1 212 266 0191
jmorakis@mgroupsc.com

Source: INTL FCStone Inc.

 

 

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