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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.

We offer products that are specifically designed to help you manage your price exposure to 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 2 broad areas - swaps and options.

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.

Suitable for:

Primary producers who are looking to protect their revenue against declining commodity prices. Refer to the   Swaps fact sheet (PDF 81KB) for more information.

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.

Suitable 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 77KB) for more information.

More information:

Further information can be found in the brochure Control what you can. Plan for what you can't (PDF 384KB)  or by contacting your local Agribusiness Banker or calling Country Business Direct on 132 142.