Price Volatility

Particularly volatile, the commodities market requires increased vigilance to better anticipate the evolution of the value of various traded products. Participants in this market must therefore take into account this price volatility to determine the most opportune moments for their transactions.

To assist you in your strategy in the commodities market, DeftHedge offers its SaaS solution specially designed to support professionals in their management of commodities.

With our tool, you will be able to better anticipate commodity price volatility and thus reduce your financial losses.

What is commodity price volatility?

In commodity exchange markets, the volatility of prices for different traded products is explained by a difference between supply and demand. This level between supply and demand is impacted by several factors that should be considered. On the supply side, several factors are involved:

  • Weather conditions
  • Rising costs
  • Geopolitical situation
  • Low inventory levels

On the demand side, it varies according to different criteria:

  • Global-scale demand increase
  • Speculation

On a daily basis, the value of traded commodities can therefore vary to a greater or lesser extent depending on these different elements. When you wish to invest or sell in commodity markets, taking into account the high price volatility is therefore essential to succeed in the best possible operations.

How to manage commodity price volatility?

When we talk about commodities, we encompass a multitude of products that are later transformed for use in the production of finished or manufactured goods.

The commodities market is thus particularly vast and consists of three main categories of products:

  • Agricultural commodities: wheat, oil, coffee, rice…
  • Precious metals: gold, iron, nickel…
  • Fossil fuels: oil, gas, coal…

All these materials are the subject of multiple transactions on a daily basis, and their value is influenced by many external factors that cannot all be controlled by market participants.

To make the management of commodity price volatility as effective as possible, it is therefore necessary to seek protection against these fluctuations by implementing an investment strategy tailored to your situation.

How DeftHedge helps companies protect against commodity price volatility?

Engaging in transactions on various commodity markets involves significant financial risks. Indeed, the prices of traded commodities are not linear and constantly fluctuate.

To maximize risk management by companies, DeftHedge has developed its management solution to help companies make the right decisions and protect against the risks of financial losses.

Comprising multiple features, our tool assists you on a daily basis with:

  • Monitoring commodity prices
  • Task automation
  • Creating hedging strategies
  • Optimizing transactions
  • Data centralization

Comprehensive and powerful, our SaaS financial forecasting software will allow you to make the best possible transactions on various commodity markets.

Thanks to the numerous data and information you will have access to through our tool, you will be able to better anticipate commodity price volatility and thus determine the best strategy to adopt for your transactions.

Committed to your success, DeftHedge experts are by your side to help you get started with our management solution in order to optimize your strategy.

Feel free to contact us and discover all the benefits of DeftHedge and take advantage of the numerous benefits of our solution for managing commodity price volatility.