Using proprietary tools developed by our Risk Management business unit, Ardent Mills’ CRM team takes advantage of innovative hedging tools to increase price predictability and offer protection in volatile markets. Whether embedded into your Ardent Mills physical ingredient purchase or sale contracts, these tools offer flexible, affordable and easily adaptable solutions to mitigate risks in a dynamic marketplace.
- Flexible – We offer unique hedging tools that provide alternatives to traditional market tools.
- Affordable – Many tools can be structured at minimal or zero cost to you.
- Adaptable – - We can tailor quantities, price ranges, and expirations to customer preferences in dynamic markets.
Trigger Cap™ Contract
- Guarantees today's futures price level as your maximum price for the shipment period, but allows you to benefit if the futures price decreases
- An excellent tool to implement in a volatile futures market
- Zero cost to ingredient customers
Capped Average™ Contract
- Guarantees today's futures price level as your maximum price
- Enables you to reduce your futures price if the daily average closing price is less than the capped futures price over the life of the contract
- Provides structured product acquisition and pricing
Digital Range Accrual™ (DRA) Contract
- Provides an opportunity each week to reduce your futures price level while offering protection from market rallies
- Good tool to execute in a range-bound market
- Low risk and zero cost to ingredient customers
Custom CRM Strategies
We can mix and match CRM over-the-counter derivative tools. Or, we can create custom hedging tools to help you set a disciplined approach for achieving specific price targets and risk goals.