FX and price hedging across the crop marketing decision
Crop cost is measured with rigour. The pricing decision has no comparable basis.
FX and price hedging for growers, mills, grain merchants and exporters: pricing decisions use soybean futures, regional basis and a dollar leg managed with the same rigour as production cost. The season's production cost is measured precisely, by hectare and by input. Planning is built on that number, and the margin target follows from it. Revenue, however, depends on three variables that keep moving until pricing: the commodity future, the producing region's basis and the export FX rate. The decision of when to price defines the whole season's margin, and is usually taken with less information than the choice of which seed to plant.
Get in TouchHow the exposure works
- Unpriced crop is an open long position, whose dollar size few companies track on a consolidated basis.
- The producing region's basis defines the price actually realised, and is rarely compared with its own history before accepting an offered premium.
- Pricing across several windows through the cycle requires daily monitoring and discipline, not just a market view at harvest.
How delegated management works
| Module | What it delivers |
|---|---|
| Risk governance agreement | Delegated volume, price objectives, limits and liquidity constraints set in writing and approved by the board before any trade. |
| Exposure mapping | Unpriced crop is recorded as a position, with dollar exposure calculated and a recommended pricing pace. |
| Active management | Trading the delegated volume across marketing windows, reading regional basis and the export FX leg, and managing margin calls. |
| Monitoring and accountability | Daily position and P&L reports, and tracking of the equivalent price achieved against the range available in the window. |
What the company gains
- Average realised price comparable to the range available in the window.
- Regional basis assessed against its own history.
- Cash flow predictability across the cycle.
- No need to build a desk or hire a quant team.
What stays with the company
- Production, logistics and relationships with buyers and lenders remain entirely yours. We do not originate physical and are not a counterparty to your credit transactions.
- Management runs within the approved volume and limits, with daily reporting and an auditable trail.
- The mandate can start with a share of the crop and expand as results are observed.
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.
An alternative for those who prefer to manage in-house
For companies with their own marketing structure, we license the UHEDGE CTRM: crop exposure map, physical curves with location basis and historical percentile, instrument calculator, daily marking and end-of-day reporting.
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, and show how much of the difference came from timing, basis and FX. That number guides the conversation better than any presentation.
Get in TouchFrequently asked questions
What is FX hedging in grain exports?
Locking the exchange rate of dollar revenue — via NDF, dollar futures or options — so currency moves do not undo the grain price you fixed.
Is pricing in dollars already a full hedge?
No. Fixing the CBOT or B3 future covers the price leg; regional basis and FX remain and must be managed separately.
How much of the crop should be priced?
It depends on production cost, cash flow and risk appetite. Policy sets ranges per marketing window instead of one-off calls.
Related profiles
Agricultural Cooperatives and Marketing Centrals
A documented method for pricing decisions taken on behalf of members, with accountability in board language.
Agro-Industrial Raw Material Buyers
Effective acquisition cost managed with all three legs — futures, basis and FX — consolidated into a single exposure.
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.