hedge21 commodities
hedge21 commodities is an AI-based decisioning software which helps
countering spread risk of commodity trading firms.
hedge21 commodities uses third wave AI to optimize decisions to trade commodity derivatives.
Among the biggest risks for commodity trading firms are changes in commodity prices. Determining the optimal timing to buy and sell depending on inventory levels plays an enormous role.
hedge21 commodities allows tactically optimal procurement planning through the use of third wave AI. hedge21 commodities automates and systematizes the management of spread risk in raw materials by calculating the optimal timing and sizing to buy and sell cash-settled derivatives.
At the same time, hedge21 commodities improves key sourcing decisions with systematic market forecasts and algorithmic recommendations for the optimal action. The AI-based combination of trading physical raw material and their cash-settled derivatives contributes to the long-term digitization of commodity traders and supports their digital transformation into new business models.
hedge21 commodities benefits
AI-based hedging of spread risk
hedge21 commodities allows commodity trading firms to accept and manage basis risk in financial markets algorithmically.
Better timing and sizing of procurement based on inventory levels
hedge21 commodities fuses forecasts of commodity prices with company-internal information such as inventory levels or agreed upon delivery dates
with the trader's client. It alerts the trading company about optimal procurement times and sizes in consideration of existing stock, prices and supply obligations.
Becoming digital
Commodity trading firms are by nature physical. hedge21 commodities supports their digital transformation, expanding them into trading cash-settled derivatives digitally next to the physical good and can even leverage them to an AI-centric modern business.
How it works
CAPTURE DATA
Your hedge21 commodities instance integrates with trusted financial data sources for your commodity.
FORECAST
hedge21 commodities computes prices forecasts from scenarios of the future and gives you situational awareness.
PLAN
From the most probable future scenarios, hedge21 commodities computes the optimal hedge or procurement action.
EXECUTE
Execute a hedge21 commodities decision yourself or connect hedge21 to an execution platform for automatic execution.
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