Solutions

First Capitol assists firms in defining commodity price risk and developing risk management programs. We work with our clients to build strategies and plans tailored to their financial goals, risk tolerance and cash market exposure. A written risk management policy guides the consistent application of our structured risk management programs.

First Capitol is experienced in providing commodity risk consulting services to ethanol and biodiesel project developers. Our structured and financially focused price risk management programs help developers integrate risk management into their business plans and meet the requirements of lenders and equity investors.

First Capitol's experience in the renewable fuels industry is of great benefit to developers during the negotiation of procurement, origination and marketing agreements. By acting as an objective advisor, First Capitol ensures that commodity agreements contain appropriate risk management flexibility. We further define our service by integrating risk management with project finance and capital structure design. Our clients begin operation with the financial strength required to support their structured risk management programs.

Managing commodity risk is a specialized and intensive activity. Often firms do not have the resources or expertise to effectively carry out this task internally. First Capitol supports our structured risk management programs by providing dedicated risk managers that act as virtual staff members for our clients. Our professional risk managers provide the monitoring, analysis and hedge execution needed to drive consistent profits.

Exchange traded hedge execution is delivered through First Capitol Group, a Futures Commission Merchant providing futures, options and foreign exchange brokerage to commercial hedgers worldwide. First Capitol Group is ranked among the nation's top 50 futures brokers by customer equity. First Capitol Group is registered with the Commodity Futures Trading Commission and is a member of the National Futures Association.

First Capitol Risk Management provides access to a full set of agricultural and energy over-the-counter derivative hedging tools. These highly tailored OTC hedging instruments can help qualified users further limit price volatility. First Capitol is unique in its expertise and ability to manage risk through combined agricultural and energy structures.

First Capitol's team includes experienced physical commodity traders who are active in the biodiesel feedstock markets. We buy in volume and offer low cost and reliable procurement of soybean oil, canola oil, palm oil and methanol. Rail, barge and vessel logistics management and integrated price risk management further enhance our complete procurement solution.

First Capitol Risk Management provides its clients with the opportunity to profit by participating in the greenhouse gas emissions trading market. As a registered aggregator of the Chicago Climate Exchange, First Capitol facilitates the verification, management and trading of carbon offset credits.

First Capitol's principals are nationally recognized as educational resources in the field of commodity price risk management. Our expertise in risk management and futures and options education is applied in seminars, industry events, and in individual corporate training. Contact us today to learn about our upcoming seminars or to learn more about the educational assistance we can provide for your firm or your clients.