Grain marketing with hedging and documented pricing decisions
The cooperative receives the member's crop. And decides, for them, when to sell.
Hedging for agricultural cooperatives: grain marketing and the pricing decision taken on members' behalf follow a documented method that holds up in a general meeting. The member delivers the crop and entrusts marketing to the cooperative. The cooperative aggregates volume, gains negotiating scale and seeks the best price available. Between receipt and sale, though, the price moves, and the decision of when to price falls on the cooperative on behalf of thousands of farmers. The outcome of that decision shows up in the distribution, is discussed at the general assembly, and must be explained with method, not with a market view.
Get in TouchHow the exposure works
- Inventory received and unpriced is an open long position, taken on behalf of the membership rather than by each member's individual decision.
- The region's basis defines the price actually realised, and is the right criterion for assessing a premium offered by a trading house, instead of the nominal price.
- Price protection is often treated with reservation at board level, frequently by undue association with speculation, when what is on the table is precisely the opposite.
How delegated management works
| Module | What it delivers |
|---|---|
| Risk governance agreement | Volume, objectives, limits and prohibitions set in writing and approved by the board. No trade happens outside what was authorised. |
| Exposure mapping | Unpriced inventory is recorded as a position, with dollar exposure calculated and a recommended pricing pace. |
| Active management | Trading the delegated volume across windows, reading regional basis and the FX leg, and managing margin calls. |
| Board accountability | Daily reports and periodic material in board and assembly language, showing the equivalent price achieved against the range available. |
What the cooperative gains
- Pricing decisions with a documented, defensible method.
- Regional basis assessed against its own history.
- Accountability to the board and the membership.
- No need to build a desk or hire a quant team.
What stays with the cooperative
- Receiving, storage, the member relationship and the commercial decision remain entirely the cooperative's.
- Management runs strictly within board-approved limits, with explicit prohibitions and an auditable trail.
- The mandate can start with a small share of the volume, so the board can assess the method before expanding it.
Hedge management track record
2.6 c$/lb
Hedge alpha
Average reduction in hedge price versus a passive futures lock.
3.5
Information Ratio
Consistency of alpha generation adjusted for tracking error.
90%
Hit rate
Accuracy of hedging decisions over an auditable historical series.
A second possibility: protection as a service to members
Beyond managing the cooperative's own inventory, price protection can be structured as an offering to members, with the cooperative keeping the relationship and UHEDGE responsible for pricing, management and reporting. The cooperative delivers a financial service its members currently seek elsewhere, without setting up its own regulated structure.
Who leads it
Rafael Lins dos Anjos, founding partner. Mechatronics Engineer from Poli-USP, with master's degrees in Economics from Insper and in Finance from London Business School. Around twenty years in global banks and commodity merchants, including Santander, Macquarie in London, Banco Pine and ED&F Man, where he headed the global OTC desk. CGA and CGE certified by ANBIMA.
See the full track recordSuggested next step
A no-cost diagnostic on last season. With the volume marketed and the pricing dates, we can compare the average realised price with the range available in each window. It is material you can present to the board regardless of any decision to engage.
Get in TouchFrequently asked questions
How does a cooperative decide when to price?
With a marketing policy: pricing ranges per window, price triggers and a record of every decision, instead of case-by-case market reads.
Does the cooperative's hedge protect the member?
Yes, when the position mirrors grain delivered by members and the result is measured and reported per crop year.
Who is accountable for execution?
UHEDGE, as a CVM-authorised manager under mandate, with reporting management can take to the board and the assembly.
Related profiles
Farmers, Mills, Grain Handlers and Exporters
Pricing decisions with method: crop exposure mapped, regional basis assessed against its own history and the FX leg managed.
Barter: Input Distributors, Dealers and Manufacturers
A three-leg hedge — grain, basis and FX — under delegated management, protecting margin between pricing and delivery.
Sources and notes
Track record: results of UHEDGE managed hedge portfolios, measured against a passive sugar futures (ICE) benchmark over an auditable historical series. The commodities fund began operations in November 2024. Calculation memo and methodology available on request.
Past performance is no guarantee of future results. Informational material only; not a public offering, an investment recommendation or a guarantee of results. Derivatives transactions involve risk of loss. The terms of each service are defined by contract.