Agricultural Commodities

The Commonwealth Bank offers a broad range of price risk management (hedging) solutions aimed at ensuring that the rural industry is able to effectively manage its risks. By offering hedge contracts over some key commodities, we are able to help growers and consumers manage their risks.

We offer commodity price risk management (hedging) products in wheat, corn and canola among the grains, cotton, wool, sugar and cattle as well as the ability to hedge fuel input costs in diesel and petrol. We are currently the only bank in Australia to offer cattle hedging.

In addition to making swap markets, the Bank also offers a range of option contracts in these commodities. These option contracts offer additional flexibility to our clients with not only a range of standard puts and calls, but barrier options as well. These options offer a wider range of choice, as well as ways of reducing the premium payable in some instances.

These products are appropriate for farmers to use in risk management and are also appropriate for larger producers and consumers as they potentially offer greater liquidity, as well as the ability to hedge for longer maturities than may be offered by a futures market.

Important information 
As this information has been prepared without considering your objectives, financial situation or needs, you should, before acting on the information, consider its appropriateness to your circumstances.

All products mentioned on this web page are issued by the Commonwealth Bank of Australia, view our Financial Services Guide (PDF 56kb). View Product Disclosure Statements (PDSs) for Agricultural Swaps (PDF 128kb), Agricultural Collar (PDF 140kb) and Agricultural Options (PDF 140kb) and consider them before making any decision about these products.