Hedging Foreign Exchange Rate Risk with CME FX Futures

The Mechanics of Hedging FX Risk

While agricultural producers tend to focus on production and market risks, another consideration for those doing business internationally is the increasingly volatile foreign exchange environment. CME FX futures products provide an avenue for mitigating these additional uncertainties, protecting profits via hedging strategies tailored to your firm’s specific level of exposure, while also eliminating the credit risk that traditional forward contracts carry with them.

This brochure details the mechanics of hedging foreign exchange risk for Canadian agricultural producers by leveraging the CAD/USD futures contract offered by CME FX, one of many liquid, effective currency risk management tools available at CME Group.

Questions or comments? Contact fxteam@cmegroup.com.

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