Risk Management is the process of determining what potential risks can occur, and how they adversely impact the equity of your company. What are the best ways to offset these potential risks? What tools best address the risks we identify? And what combination of tools plus what knowledge and level of understanding is best suited for each customer’s risk preference, balance sheet, and loan covenants?
Our team at Compass Ag Solutions will walk through different strategies such as futures, options, spreads, crushes, and multiple combinations of each strategy. Additionally, we incorporate a tremendous amount of fundamental and technical research supporting every conversation with each customer. Our goal is to provide clarity when it comes to your decision-making process through actionable analysis.
Compass Hedging (US and Canadian Producers)
Compass Hedging is an introducing brokerage firm offering traditional risk management for agricultural producers through commodity hedging, but with a customized, personal approach. Our company is driven by our values and the relationships we have and continue to build with our clients. We clear all our trades through R.J. O’Brien. Our allied company, Compass Ag Solutions, provides expanded consulting, risk management and analysis services.
If it is determined that the amount of risk being taken by a firm needs to be altered, it is extremely important for the management team to be disciplined in the execution of risk mitigation. Not all risk mitigation is created equally, and there is not a one size fits all approach. Instead, our team will work with each company to determine the best methods for reconstructing the size of their risk. We have a strategic relationship with industry-leading firms, who specialize in executing futures and/or options strategies with technological expertise rarely found in the agriculture sector.
Compass adopts a progressive approach of being informed, engaged, and prepared in the market on an ongoing basis. Our consultants are students of the market. We seek alternative approaches to risk management that are customized to each client. Customer support is team oriented so that customers benefit from collaboration and collective market. The Compass network spans North America Coast to Coast and beyond, ensuring timely and pertinent market information. The Compass Ag team is always available to discuss strategies with customers.
At Compass Ag, we strive to keep our customers up-to-date with the latest fundamental market information. Between in-house research and use of strategic information partners, Compass Ag provides knowledgeable insights into the supply and demand drivers of many markets. Our customers often look to Compass Ag as their premier source of fundamental market information. Unlike many brokers who wish to apply their market information to your positions, we will not lose sight of how changing supply and demand dynamics can impact your bottom line. At Compass Ag, we will always keep your personal risk tolerance in mind.
The art of technical analysis can be a complex field of alternative interpretations, which a producer or trader must navigate. At Compass Ag, daily technical insights are provided to customers in a simple and straightforward manner that gives you actionable targets. Our approach provides reliable and consistent perspectives that you can use to meet your hedging and trading goals.
Cattle feeding has advanced significantly over the years as producers strive to capture margin opportunities. Compass Ag Solutions takes pride in keeping their customers aware of forward board margin opportunities available through futures “crush” trades. Combining current market information with historical seasonal patterns gives Compass Ag customers unrivaled perspectives that can be used to their advantage. All of the brokers at Compass Ag have been directly involved in “hands-on” agricultural production, and we understand the difficulties in decision making at a farm, ranch or a feedlot. We have been there too, and we strive to add value to your operation. Occasionally, arbitrage opportunities present themselves to keen market participants in the cash/physical markets. At Compass Ag, we understand that part of your success is being able to find and capture those opportunities. We provide risk measurement tools that enable customers to act confidently.
This material has been prepared by a sales or trading employee or agent of Compass Hedging, LLC and is, or is in the nature of, a solicitation. This material is not a research report prepared by Compass Hedging, LLC. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.
DISTRIBUTION IN SOME JURISDICTIONS MAY BE PROHIBITED OR RESTRICTED BY LAW. PERSONS IN POSSESSION OF THIS COMMUNICATION INDIRECTLY SHOULD INFORM THEMSELVES ABOUT AND OBSERVE ANY SUCH PROHIBITION OR RESTRICTIONS. TO THE EXTENT THAT YOU HAVE RECEIVED THIS COMMUNICATION INDIRECTLY AND SOLICITATIONS ARE PROHIBITED IN YOUR JURISDICTION WITHOUT REGISTRATION, THE MARKET COMMENTARY IN THIS COMMUNICATION SHOULD NOT BE CONSIDERED A SOLICITATION.
>The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that Compass Hedging, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.