Miller Magazine Issue: 118 October 2019

78 MILLER / OCTOBER 2019 “New PLATTS contracts help bring great awareness to the topic of risk management for Black Sea players, but still are not the end all solution to manage price risk. There remains plenty of risks as it relates to credit, execution, foreign exchange, interest rates. The need for cash in a risk management plan remains an important factor to understand to manage margin calls, and this remains a large hurdle for many in the Black Sea as cash is typically wanted to re-investment in the physical business. The market’s involvement is needed to sustain liquidity in these contracts, which are crucial for the health of a trading market. Price Hedging in Black Sea gains further momentum with use of financially settled contracts Matt Ammermann Commodity Risk Manager Vice President Eastern Europe/Black Sea Region INTL FCStone Financial Inc- FCM Division* Mr. Matt Ammermann is a Commodity Risk Management Consultant in the Eastern Europe/Black Sea region with the FCM Division of INTL FCStone Financial Inc. Working at the forefront of risk management in one of the fastest and largest growing agricultural markets in the world, his team provides risk management solutions to help improve and control margins and the impact of commodity prices to a business’s operation. For the past decade, Mr. Ammermann has been working in the region with producers, traders, exporters, crushers, millers, and consumers from all commodity groups helping to educate and guide them on how to effectively manage their price risk. INTL FCStone Financial Inc. offers in- depth market intelligence, which provides tremendous value in the volatile commodity markets. Growing up on a farm and active in its operations, Mr. Ammermann understands the markets are changing; companies that actively manage their price risk will be in a better position to grow and adapt to these market changes.