Commodity Price Risk Management
Protecting the value of your agribusiness from the impact of commodity price fluctuations can help with everything from long-term business planning to managing your day-to-day cash flow.
Westpac offers products that are specifically designed to help you manage your price exposure to a wide range of commodities, including wheat, sugar, corn, cotton, soybeans, and diesel.
Your Westpac Agribusiness Banker working with Westpac Commodity Specialists can help you develop a commodity risk strategy that's uniquely suited to your situation.
Ultimately, the majority of commodity solutions used by Australian agribusinesses can be grouped into two broad areas:
Swaps
A swap allows you to exchange, or swap, a floating price for a fixed price for a specified commodity at an agreed future date. This provides the security of a fixed commodity reference price, allowing you to budget and plan with more certainty. Swaps can be particularly useful for primary producers who are looking to protect their revenue against declining commodity prices.
Refer to the 
Swaps fact sheet (PDF 442kb) for further information on Swaps.
Options
Like a Swap, Options can be used to protect your agribusiness against adverse commodity prices. However unlike a swap, options also allow you to benefit from any favourable price movements that may occur. Options may be useful for producers looking to protect their revenue against declining commodity prices or consumers looking to protect their costs against increasing commodity prices.
Refer to the Options fact sheet (PDF 443kb) for further information on Options.
Your Westpac Agribusiness Banker working with Westpac Commodity Specialists can help you develop a commodity risk strategy that's uniquely suited to your situation.
More information on this topic can be found in the 'Control what you can. Plan for what you can't', Commodities brochure (PDF 384kb) or by contacting your local Agribusiness Banker or call Country Business Direct on 1300 134 979.
General advice on this website has been prepared without taking into account your objectives, financial situation or needs. Before acting on the advice, consider its appropriateness. Consider our disclosure documents, which include Product Disclosure Statements (PDS) for some products. The PDS is relevant when deciding whether to acquire or hold a product. View our Australian Prudential Regulation Authority Registrable Superannuation Entity (RSE) Licence & Registration numbers.
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