Financial Commodity Hedging: Understanding the Basics
Thursday, Jun. 21, 2018
11:00 AM - 12:00 PM
Does commodity volatility and trade tariffs have you concerned?
If you buy or sell commodities that effect your bottom line this webinar is for you!
With the possibility of government imposed trade tariffs, commodity volatility is back in the spotlight. Recently, common commodities like steel (up 33%), gasoline (up 24%), crude (up 18%), nickel (up 15%), and soybean (up 6%) are up substantially in 2018. Other commodities like sugar (down 28%), milk (down 7%), copper (down 4.70%), and natural gas (down 4.40%) are moving the opposite direction.
These swings can create challenges in pricing, budgeting and forecasting. If you are concerned about controlling these costs, please consider attending this free webinar. Huntington will present hedging strategies to bring fixed price and budget stability to your purchase or selling cycle.
Even if you currently hedge on the NYMEX or other mercantile exchanges you may find this webinar useful. Huntington will offer insights on its forecast for certain key commodities, discuss when hedging may make sense, and provide example transactions to educate attendees on how financial hedging may assist you.
These materials and any communications herein have been prepared by The Huntington National Bank, and are provided for informational or illustration purposes only. Nothing herein shall be construed as an advertisement or offer to buy or sell any Huntington product, nor shall the information be considered advice or a recommendation to enter into or refrain from any transaction. Any statements, including opinions and recent quotations on rates and products, are subject to change without notice. The content presented within this material is based upon information that Huntington believes is reliable, but Huntington does not warrant its completeness or accuracy, and it should not be relied upon as such. Additional information to what is presented in this material can be made available upon request.
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Topics of Discussion:
- What is a financial commodity?
- How does it work
- Value of financial hedging - what are the advantages?
- Basic examples of a hedge
- Current market status: oil / fuels, natural gas, base materials / steel
Philip R. Brenckle
Senior Vice President
Regional Executive of Central PA
Philip is the Head of Huntington National Bank’s Central Pennsylvania Commercial Banking business. He is accountable for implementing and leading Huntington’s strategy within Central Pennsylvania and growing Huntington’s long term presence in the region. With his team of local and regional experts he will help bring advanced capabilities to corporations, health care entities and government. Just a few examples include commodities hedging, private placements and corporate insurance solutions. Huntington provides lending capabilities for international growth, ESOP creation, mezzanine capital, and technology asset financing in addition to many other areas.
An industry veteran of more than 16 years, Philip joined Huntington with a very strong track record of success in middle-market and commercial banking. Prior to joining Huntington, Philip worked in commercial banking for a top 10 national bank as a relationship manager, team leader, and group manager in both the Pittsburgh and Central Pennsylvania regions.
Education: Philip earned an M.B.A. from the University Of Pittsburgh Katz Graduate School of Business and a bachelor’s degree in business administration from the AJ Palumbo School of Business at Duquesne University.
Community Involvement: Philip serves on the foundation board of the Lancaster County Career and Technology Center Foundation, the board of ExecuStar, and is a member of the Four Diamonds Fund advisory board. Philip currently resides in Hershey, Pennsylvania.
Managing Director, Commodities
Darrell is responsible for the launch and on-going management of the Capital Markets Commodities Sales and Trading Desk for Huntington Bank in Columbus, Ohio. He is responsible for managing the execution of commodity trading, marketing and hedging programs to commercial and institutional clients for the bank. Darrell has over 24 years of experience in commodity and foreign exchange trading banks and large corporations.
Prior to joining Huntington Bank, Mr. Fletcher spent 13 years with Fifth Third Bank in Cincinnati, OH where he managed the Capital Markets Commodities Sales and Trading desk. This was a client centric desk focused on serving the large corporate and energy producer markets. He personally led the successful launch of the desk after first serving in a leadership role on the Foreign Exchange Sales and Trading Desk. Prior to Fifth Third Bank, Darrell managed the ALCOA $9 billion commodity and foreign exchange hedging portfolio in Pittsburgh, PA.
A graduate of The Ohio State University, Mr. Fletcher earned a Bachelor of Science in Industrial Engineering. He continued his education at the McColl School of Business at Queens College in Charlotte, NC where he earned an MBA.