CFO.Com, October 17, 2013
“Fifty-three percent of the 1,075 randomly selected companies had exposure to commodity price risk, but less than half (43%) are hedging it using financial contracts. While commodity price swings can dent earnings even more than currency volatility, companies may seem underhedged on commodities. Also, though, hedging commodity prices is more complex than hedging FX or interest-rate risk, according to Dhargalkar.”
“Most CFOs and treasurers feel comfortable with interest-rate and currency derivatives but the commodities market is much more nuanced, points out Dhargalkar. “