Agricultural swap - Buyer

Keep your profits sheltered from fluctuating grain prices

Ensure your agricultural product purchasing costs remain stable by protecting against market price fluctuations

Does your company buy corn, wheat or soybeans and are you concerned about rising prices? An agricultural swap provides flexible and efficient hedging to improve your company's financial stability.

Efficiency

  • Protect your profit margins from major market fluctuations while preserving cash reserves
  • Improve your company's financial strength with better control over your expenses
  • Ensure you stay on schedule and on budget

Flexibility

  • Establish your product purchasing costs in advance
  • Select your hedging period
  • Establish specific monthly quantities based on your purchasing plans
  • Select a currency (USD or CAD)
  • Continue to purchase from your usual suppliers as before

Simplicity

  • If the observed price on financial markets is higher than the set swap price, National Bank will pay you the difference on the agreed-upon volume
  • If the observed price on financial markets is lower than the swap price, you must pay the difference on the agreed-upon volume to National Bank
Keep your profits sheltered from fluctuating grain prices
*Executing a swap to hedge the risk of price fluctuations results in basis risk, as there are differences between financial market prices and the amounts paid by the purchasing company in its actual local market. This price disparity may be favourable or unfavourable for the business.

Our specialists are ready to meet with you and help you assess your risks and recommend a made-to-measure strategy.