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Risk Management Solutions

Agricultural commodities experience significant price changes and enhanced volatility, creating a difficult operating environment for producers and supply chain participants. Using our deep understanding of both agriculture physical networks and risk, Olam Risk Management Solutions (RMS) can help give customers an edge.

Olam RMS stemmed from Olam’s experience in each part of the supply chain, as a grower, origin buyer, primary processor, secondary processor and trader. Olam’s effective management of daily risks encountered across multiple geographies and products has resulted in a solid and expert risk management service.

The department started in 2003 and is now composed of seasoned professionals with backgrounds in physical commodities and financial instruments trading, combine more than 100 years of industry specific experience. Our reach is global with 6 offices and more than 15 salespeople.

We pride ourselves on agility and nimbleness, offering the chance to combine physical deals and price hedging to all the agricultural supply chain participants subject to price risk.

The key highlights of how we do business with our customers are:

  • Focus on forming long-term partnerships with our customers
  • Quick screening and enrolment
  • Smooth, guided and hassle free onboarding process
  • Differentiated margining lines
  • Best-in-class statements
  • Fast and competitive prices delivery with real-time market insight
  • Client services team which supports different time zones.

Our offering

100% customised solutions:
through a consultative approach we provide completely customised solutions to specific customer needs.

Structuring capabilities: we offer over-the-counter hedging solutions on a wide range of agricultural products, with maturities that can go beyond the last exchange traded commodity contract. These include softs, grains and oilseeds.

Embedded solutions in physical: by offering embedded risk management solutions we can provide liquidity for the physical commodity as well as price protection through risk overlay techniques.

Producer specific:  Olam is uniquely positioned to help producers manage risk through a combination of financial solutions as well as well as embeds in physical contracts. Our strategies offer producers price protection in a falling market while giving them the opportunity to participate in the upside. Customers include coffee farmers, sugar mills, and grains farming cooperatives.

Buyer specific: RMS solutions enable buyers to lock in their purchase price in order to secure budgets and protect margins. Our goal is to reduce surprises and ensure price stability. Customers include flour mills, confectionary industrials, and animal feed manufacturers.

Processors and Merchandisers specific: RMS also provides solutions to companies which have exposure to price volatility on both sides. Customers would be soybean crushers, cocoa merchants, etc.

Hedging solutions in several currencies offered on:

  • Grains and oilseeds: corn, wheat, soybeans, soybean oil, soybean meal, crude palm oil;
  • Softs: cotton, Arabica coffee, Robusta coffee, raw sugar, white sugar, cocoa

Types of solutions:

  • Swaps
  • Vanillas and Look-alikes
  • Structures: non-standard strikes, short-dated, daily strips, digital, Asian, American and European barriers

Contact Info

T: (+65) 6339 4100