Margin Management

|mar·gin | man·age·ment |

Definition of Margin Management

1. : a commodity risk management program focused on financial outcomes rather than individual commodity prices
2. : the purposeful and consistent use of commodity risk management tools to oversee and control the difference between commodity sales, commodity costs and all other costs
3. : a method of capturing and analyzing commodity price data, commodity position data and operational performance for the purpose of financial and risk analysis
// a prudent hedger uses a margin management program to capture opportunity and minimize risk


We deliver comprehensive commodity margin management solutions for:
  • Dairy Producers
  • Cattle & Hog Producers
  • Ethanol & Biodiesel Producers
  • Grain & Oilseed Producers
  • Other Processors & Intermediaries

Structured Approach

Our Margin Management Program is built around three key pillars that help bring order to the chaos in markets and operations:
  1. Custom Margin Model – we build a forward-looking financial model that is customized to your specific operation. The model is marked-to-market daily and provides reports that support proactive decision making.
  2. Written Policy – we guide our clients through the creation of a written risk management policy matched to their risk tolerance and financial objectives.
  3. Regular Conference Calls – we lead regular online meetings to keep our clients up-to-date on market developments and to help provide consistency in execution of their margin management program.

Margin Model

Every operation is different and so is every one of our clients’ margin models. We built our proprietary software system from scratch to support the real-world risk management needs of the markets we serve. Key features include:

  • All of your financial, physical and operational information in one place
  • A clear forward view of your margins
  • Open position & closeout reports
  • Integration of government and insurance programs
  • Advanced stress testing tools
  • Cash and futures market data feeds
  • Desktop and mobile online reports
  • Monday Morning Margin Report by email
  • Access for your whole team

Schedule a Demo

Contact us today to discuss your operation’s risk management needs and to schedule a brief online demo of our margin management portal.