Agriculture

Cultivating Success Across the Globe

At BANDS, we provide electronic and voice trading services on all major exchanges, including the CME Group, ICE, SGX, DCE, BMD, OSE, and INE. Our experienced team works with clients ranging from family-run SMEs to international trading houses and hedge funds active in the global markets for grains, oilseeds and more.

Grains & Oilseeds

Featured Markets

BMD | CME | DCE | ICE | ZCE

Featured Products

Wheat | Soybeans, Meal & Oil | Canola | Rapeseed, Meal & Oil | Palm Oil | Corn | Oats | Rice

Livestock & Dairy

Featured Markets

CME | NZX | SGX

Featured Products

Pork | Cattle | Milk, Powder & Fat | Butter

Tropical

Featured Markets

CME | DCE | ICE | INE | OSE | SGX

Featured Products

Coffee | Cocoa | Sugar | Rubber | Orange Juice

Others

Featured Markets

CME | ICE | ZCE

Featured Products

Cotton | Fertiliser | Lumber Peanuts

Case Study: Hedging Soybeans in China

Background

A Brazilian soybean exporter is targeting the Chinese export market and offers a buyer in China to price the soybeans based on the domestic Dalian Commodity Exchange (DCE) Soybean No.2 (B) contract, which generally targets imported soybeans. While this can make the offer more attractive to the Chinese buyer, it also means the exporter is now exposed to the risk that the price of the Soybean No.2 (B) contract in Dalian may have fallen by the time of delivery.

Trading Soybeans in China

Hedging Process:

  • Sell the Soybean No.2 (B) futures contract on the DCE to lock in the export price.
  • Upon delivery, buy back the futures contract at a lower price if the market price has fallen.
  • The profit from the futures market offsets the lower price received in the physical market.

Managing the Exchange Rate Risk with FX Futures

Exchange Rate Risk:

  • The Chinese futures contract is traded in RMB, while the exporter receives USD.
  • If the RMB weakens relative to the USD, the exporter's hedge is at risk.

Mitigation Strategy:

  • Take a long position in the SGX or HKEX USD/RMB futures contract.
  • Both the price of soybeans and the USD/RMB exchange rate are now locked in.
  • Consider using the CME USD/BRL contract to convert export earnings back into reais at a fixed rate.
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Esunny trading screen

Seamless Market Access

Global Connectivity

Based in Hong Kong, BANDS offers clients the ability to trade simultaneously in both the Chinese and international markets from a single account. As arbitragers, hedgers or directional traders, our clients are active on all major international exchanges in Asia, Europe and America.

Transparent Pricing

We provide a trading screen to all clients free of charge, allowing clients to track market prices in real-time and execute orders directly by themselves in all electronically traded markets - no hidden markups, no execution delays.

Technology

BANDS offers a wide range of platforms, including Esunny, CQG, and TT. For clients that require custom solutions we also provide API and FIX connectivity, while Esunny supports program trading through its Python integration.

BANDS Staff

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