Managing price risk has never been more complex than it has been in the past two years. Where previously Covid-19 dominated the market, it is now the terrible war in Ukraine. Proper use of the futures market can help you in this disrupted market.
Over the past thirty years, the world has perfected the distribution of raw materials into an excellent logistics system. Where cheap goods from China came this way, food and feed raw materials could be returned cheaply. Transporting a container to China was cheaper than driving a truck from Groningen to Maastricht. Raw materials were always available on demand and if a harvest failed somewhere, it was possible to switch via another continent. The result was relatively low prices with stable price developments.
The future is different
How different are the cards now. The logistics network has been disrupted by corona and the availability of raw materials is no longer self-evident due to the war in Ukraine. The result is a high degree of volatility (volatility) in prices. Proper management of price risks has therefore become even more important.
Use of the futures market
Proper use of the futures market can help you. Trading on the futures market does require good preparation and knowledge from the participant before he starts trading. Trading through an experienced broker, who falls under the supervision of the Netherlands Authority for the Financial Markets (AFM) is therefore very important. Do not be tempted by parties who claim to have an understanding of it and who operate outside the scope of the AFM.
DCA Finance is a party that has been active as a broker on the various commodity exchanges for more than fifteen years. His specialty is the trade in potatoes, grain and milk. The experienced traders each have over 25 years of experience trading the futures market and can tell you exactly how things work and how to manage your price risk.
In order to trade on the futures market, DCA Finance BV open an account with BinckBank. From there you can start trading the futures market. By getting in touch with our experienced traders you can place your order and roll out your price risk strategy.
Start trading
If you are interested in trading on the various commodity exchanges, please contact Contact the trade desk for a no-obligation discussion. Or follow one of the online courses that DCA regularly gives. If you would like to learn more about the futures market, download us information booklet: Successful trading on the agricultural futures market.