Risk management for commercial commodity end users:
Commodity risk management has evolved and for commercial buyers to stay competitive they will have to evolve as well.
Most procurement managers rely solely on fundamental analysis of supply and demand to make buying decisions. But fundamental analysis is not very well suited when it comes to making real-time market buying decisions. It is flawed by old or known information, forecast bias, and human emotion. Better suited to make long term planning and capital decisions, a vast majority of commodity risk managers now employ systematic models. In fact, it nearly dominates every aspect of commodity trading advisor and hedge fund trading decisions.
Should you consider systematic models to manage procurement risk?
The link below is a video introduction to the McKeany-Flavell / ABSR Research futures systematic timing program. It explains the evolution of algorithmic trading and how you can incorporate a more stable and predictable procurement process to your operation. If your serious about lowering input cost , decreasing price volatility and staying ahead of your competition, then it’s time to evolve with the market.
Want to learn more about how we can customize a rules based systematic procurement strategy for your business?
Contact us at either:
ABSR Research: firstname.lastname@example.org