Managing Commodity Risk

Managing Commodity Risk is a clear and practical guide to managing commodity risk and explains how the commodity futures markets can be used to the manager's advantage.

Beginning with a general overview of the definitions, processes and procedures, the book then explains in detail each of the individual approaches and looks at topics such as the commodity markets and their instruments, hedging with commodity futures and options and commodity futures exchanges. There is a checklist with key issues and approaches raised at the end of each chapter.

This book is a practical primer for business managers who wish to manage and minimise the risk within their own industry. List of Tables.

Commodity Risk, Commodity Futures and the Management Function.

The Commodity Markets and Their Instruments.

Commodity Futures Exchanges.

Mechanics of the Marketplace.

Hedging with Commodity Futures and Options -
The User's Hedge.

Hedging with Commodity Futures and Options -
The Producer's Hedge.

Creative Commodity Risk Management.

Index. JOHN J STEPHENS has considerable practical experience of commodities trading and runs a training company specialising in the futures and futures options markets. For 10 years he was CEO of a management consultancy firm with many large international clients, whilst from 1992 onwards he worked in the financial services sector for first SANLAM and later ABSA Bank, specialising in market and financial product development. He is also an advocate of the Supreme Court of South Africa. Commodity risk and commodity futures are not merely used by financial traders, they can also be an invaluable tool for the everyday business manager.
This book examines, in a balanaced and objective fashion, the extent to which the commodity futures markets can be used to the manager's advantage. Beginning with a general overview of the definitions, processes and procedures, the book then separately explains in detail each of the individual approaches. Topics dealt with include:

• Commodity Risk, Commodity Futures and the Management Function
• The Commodity Markets and Their Instruments
• Commodity Futures Exchanges
• Mechanics of the Marketplace
• Hedging with Commodity Futures and Options - The User's Hedge
• Hedging with Commodity Futures and Options - The Producer's Hedge
• Creative Commodity Risk Management

Most businesses will face commodity risk in some form. It is how the company manages this risk that will help to determine the success of the firm. In this highly practical book, John J. Stephens explains in a clear concise manner the best techniques for managing such risks. Aimed at the ordinary businessperson, this book is a practical primer for those who wish to manage and minimise the risk to their industry, through instruments such as commodity futures, without wishing to have the technical knowledge of professional financiers.
This book provides the ideal starting point for the good manager not only to minimise commodity risk but to gain benefit also.