Risk hedge analysis of commodity freight cost

Abstract

There is a clear need for risk management of future contracts in any company that tries to minimize equity losses and expenses arising from interest rate and price variations. The purpose of this work is to evaluate freight hedging strategies for the agricultural commodities market, mainly Alagoas sugar exports. To do this, it is necessary, in view of the way in which the market operates, to understand the hedge as one of the economic functions of futures commodities markets, used for protection and risk management. Knowledge of cost and logistics as applied to the agribusiness sector is also required. With this in hand, it is possible to define the variables and hedge models of freight cost risk for Alagoas sugar exports.