Commodities

 

Commodities have been a core business for Macquarie since its inception in 1969, and they continue to play a significant role in Macquarie’s global activities today.

Our presence across the entire spectrum of the commodities markets enables us to deliver comprehensive financing and risk management solutions for our clients.

With a global network of sales, trading, financing and origination professionals, our clients benefit from access to a highly customer-focused team providing tailored risk management solutions and in-depth market knowledge to producer and consumer clients.

A full suite of commodity asset classes

Macquarie’s presence in the commodity markets encompasses a full suite of commodity asset classes. Our sales staff and analysts have in-depth knowledge of the markets and the linkages between the different 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.

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

Macquarie is an active provider of risk management solutions across the energy value chain from production, transportation and refining to storage, utilities and end consumers. We are recognized experts in financing and trading for clients throughout Australia, Asia, North America and Europe. We focus on tailored solutions across the energy complex and offer sales, trading, asset management, and origination capabilities in a wide array of energy products, including renewables, power, LNG, natural gas, crude oil and refined products, and natural gas liquids. Our clients include producers, refiners, large industrials, airlines, utilities, shipping companies, wholesale marketers, aggregators, and other participants in the energy markets.

In the United States, Macquarie Energy specializes in short- and long-term energy supply, asset optimization and management, hedging solutions, sophisticated risk management tools, and structured transactions. In North America, Macquarie Energy is ranked as the fourth largest marketer of wholesale natural gas*.

Macquarie has established a Code of Conduct for price reporting that is applicable to all employees and representatives of Macquarie Energy Markets who engage in, or support, the buying and selling of energy products on behalf of Macquarie's Energy Markets Division.

Globally, our energy markets activities include:

Natural gas and power

Active in the US, Canada, Australia and Europe, Macquarie provides:

  • physical gas and power supply
  • trading in financial gas and power
  • management of storage and transportation portfolio
  • hedging and risk management services
  • complementary investment and development opportunities.

Coal

Macquarie’s coal desk combines a presence in financial and physical markets to deliver structured solutions to coal producers and consumers around the world.

Oil and oil products

Macquarie has global physical oil product teams in the Americas, Europe, Asia and Australia providing risk management programs and supply solutions for clients with exposures to crude oil and related markets. In addition to core physical cargos, barge movements, and pipeline transactions, Macquarie’s global oil desk offers structured financial products and various commodities based financing instruments.

Energy financing

Our Metals and Energy Capital Division provides debt and equity capital for the upstream and midstream oil and gas companies to facilitate the acquisition and development of oil and gas assets.

We invest at the corporate and project level by providing:

  • oil and gas borrowing base revolvers
  • structured and project finance
  • corporate restructurings and recapitalisations
  • mezzanine and subordinate debt
  • convertible debt
  • equity capital
  • tailored commodity price risk management.

For more information on our energy financing solutions, click here.

 

*PlattsGasDaily (December 2010)

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.

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:

Trading and hedging Financing Banking and price making
Industrial metals and bulks Precious metals
  • Cu, Al, Zn, Ni, Pb, Sn and other base metals
  • Swaps, forwards, options, including vanilla, Asian-style, barriers and digitals
  • Structured/tailored products
  • Swaps on cobalt, molybdenum, iron ore and coal
  • Au, Ag, Pt, Pd
  • Spot, forwards, deliverable swaps, cash settled swaps, options, including vanilla, Asian-style, barriers and digitals
  • Structured/tailored products
  • Metal and cash accounts
  • Competitive deposit rates
  • 24-hour market maker
  • Primary source of liquidity
  • Base, precious and industrial metals
  • Foreign exchange
  • Performance bonds and guarantees
  • Project finance
  • Corporate debt
  • Working capital facilities
  • Acquisition facilities
  • Mezzanine loans
  • Convertible loans
  • Principal equity
  • Royalties

Metals financing

We provide debt and equity capital to the metals industry globally. We target opportunities in the $US5m to $US100m range and provide both debt and equity at the corporate and project level. For more information about our metals financing solutions, click here.