Commodities

Agricultural commodities

Macquarie is the longest standing provider of trading and risk management services to agricultural producers, consumers and market participants and has been actively trading in global agricultural commodity markets for more than 20 years.

In Europe our expertise is marketed by dedicated staff in offices in London and Switzerland.

Macquarie’s agricultural commodities capabilities include:

• risk management and hedging solutions
• structured finance
• inventory finance.

Our team is represented across four continents and our people are experienced marketing, trading and structuring professionals. Our services to clients include a 'one-stop-shop' for exchange traded and over the counter risk management including:

• grain (corn, wheat)
• softs (sugar, coffee, cocoa)
• soybean complex
• rapeseed / canola
• palm oil
• ethanol
• pulp and paper
• dairy products
• livestock and meat.

Macquarie combines expert knowledge, service, structuring capabilities and long-term commitment to support agricultural producers, consumers and intermediaries in major markets globally.

Agriculture online

Energy markets

In Europe, Macquarie provides a comprehensive range of financial risk management products across the energy markets asset class. In addition, we actively trade physical oil, gas, power, carbon emissions and coal products. These activities are complemented by Macquarie’s UK retail gas supply and metering subsidiaries, Corona Energy and Energy Assets Limited.

We focus on tailored solutions across the energy complex and offer sales, trading and origination capabilities in physical and financial crude oil, refined products, coal, LNG, natural gas and power. Our clients include producers, refiners, airlines, utilities, shipping companies and other participants in the energy markets.

European gas

Macquarie trades gas in the following markets:

• United Kingdom – NBP
• Belgium – Zeebrugge Hub
• The Netherlands – TTF
• Germany – Gaspool & NCG Virtual Point
• France – PEG Nord
• Austria – Baumgarten (2011)
• Italy – PSV (2011)

European power

We are active traders of physical and financial power in Germany, France and the UK with trading, marketing and origination capabilities including long-term power plant hedges, load shaped products, basis and location spreads and energy management services.

Cross-commodity

Our combined activities in the physical and financial markets enable us to create highly effective and bespoke risk management solutions for clients.

Cross-commodity activities include: 

• fixed price and index oil formula trades
• dark / spark spreads
• dark / spark spread options
• power plant tolls
• virtual storage
• flexible volume gas and power deliverables and offtake 
• oil price linked gas “take or pay” contracts and swing.

Environmental Financial Products

The Environmental Financial Products team provides a wide range of financial solutions to corporate and government customers to help them manage their environmental obligations.

Macquarie’s global team of dedicated environmental market professionals are located in the major environmental centres, with offices in London, Houston, Hong Kong, Beijing and Sydney.

Environmental Financial Products provides a full suite of solutions centred on three core offerings: supply, financing and risk management.

Supply, financing and risk management

Macquarie couples its depth of experience as a top tier, global commodities trading and finance house with its environmental markets expertise. Our services include:

Access to supply: origination and secondary market supply

• Strong pipeline of international emission reduction projects available for direct investment and carbon credit purchase
• Macquarie has a full-service trading desk dealing in secondary carbon credits including CERs and ERUs, as well as domestic emission allowances and renewable energy certificates.

Financing: a full range of debt and equity financing, including

• Inventory financing for new and existing environmental market compliance units
• Derivative financing for emissions abatement and renewable energy projects.

Environmental risk management: structured products and risk management solutions are tailored to meet each client’s specific requirements

• We provide fixed price certainty through forwards and swaps
• We offer price protection via options and collars.

Freight

Macquarie has provided freight derivative solutions since 2006, and provides dry freight services for clients.

Our dry freight derivative desk is the leading option market maker in the Forward Freight Agreements (FFA) market, assisting all participants in the dry bulk shipping market in their hedging needs. The team, with staff in London, Singapore and Melbourne, provide bespoke risk management solutions to ship owners, charterers, and operators across all the major vessel sizes. The desk is able to provide physical freight support to its clients and can combine its extensive knowledge across both physical and derivatives to cater for the full spectrum of client needs.

Macquarie’s clearing team is one of the leading FFA clearing providers of swaps and options on the Norwegian Options & Futures Clearing House (NOS), Singapore Exchange (SGX) and LCH.Clearnet (LCH). Our cleared FFA service provides clients with the benefits of margin netting, elimination of counterparty credit risk, and straight through processing.

We can also provide advisory services on vessel ownership, long-term hedging, shipping funds, and port infrastructure.

Metals

Macquarie provides financing, hedging and price making to producers and consumers of precious and base metals. Our team includes industry experts, from geologists to mining engineers to metal market traders, providing expertise from mine pre-feasibility to metal trading and hedging. We have been operating continuously in metals markets since the early 1980s, giving Macquarie one of the longest track records globally in this market for a financial institution.

We provide 24-hour trading and price-making for base and precious metals and are a principal provider of liquidity globally.

We are an associate broker clearing member of the London Metal Exchange and a full member of the London Bullion Market Association.

Our clients benefit from access to our commodities research team, which is recognised internationally for its high quality and comprehensive analysis of the global metals markets.

We service our customers from our offices in Sydney, Perth, London, New York, Toronto, Vancouver and Tokyo.

Macquarie has capabilities across the metals value chain: