A commodity swap is usually used to hedge against price swings in the market for a commodity, such as oil and livestock. Commodity swaps allow for the producers of a commodity and consumers to ...

Effective hedging strategies, such as using futures, options, and swaps, are crucial for stabilizing costs and managing price ...

The first party has locked in the price of the commodity by using a currency swap, achieving a price hedge. Commodity swaps are effective hedging tools against variations in commodity prices or ...

The article address what a “swap” is and how it is used ... away at $4.00 per Units does not matter – the hedge position locks in a fixed commodity price. Under these circumstances, the ...

There is no reason to accept off-the-shelf hedging approaches when the risks themselves are anything but standard. Over-the-counter (OTC) commodity derivatives – whether forwards, swaps ...

Treasury desks typically prefer average-price swaps and options, which reduce the volatility of the hedge by minimizing the risk associated with pricing on any one day. In agricultural commodity ...

The disconnect between global economic growth and commodity prices is focusing treasurers’ minds on hedging exposures to everything from cocoa to cobalt. Earlier this month, the World Bank published a ...

The following table summarizes NOG’s open NGL commodity derivative swap contracts scheduled to settle after March 31, 2025.