We run a small factory and sell Natural rubber to tire makers.
I need someone to help me to design a hedging strategy in order to optimize our sales.
Client buys in USD and based in spot price of “futures market in Singapour Rubber market”
Supplier of raw material are selling to us in Euro (cost) at a fixed monthly price based on same market from Singapore futures but ( the buying price is an average of previous month plus forex Euro / Usd.
We use Futures and have access to options.
Market & data reference
SGX - SICOM FUTURES - TSR20
EUR / USD FX