We work with biodiesel plants and end users to establish risk strategies designed to protect and/or lock in margins for both integrated crushing biodiesel facilities as well as stand-alone biodiesel facilities. StoneX Group Inc. has the tools and personnel to manage margins in the biodiesel industry through its in-depth market intelligence and broad-based cash market knowledge in all sectors of the processing cycle. We use the broad range of tools to work toward enhancing profitablity, expand merchandising efforts, and mitigate multiple risks in volatile markets. We apply astute risk-management strategies and sound recommendations to help customers navigate highly volatile markets and concentrate on running their business.
StoneX Group Inc., through its affiliates, also offers added services such as feedstock procurement, transportation, logistics, and financing to order to help customers maximize their operations. StoneX Commodity Solutions has a program, Feedstock Financing, which helps biodiesel producers run at capacity and reduce their working capital requirements. In this program, Commodity Solutions purchases feedstock from various suppliers and sells this feedstock to the biodiesel plant. The biodiesel plant sells ASTM 6751 spec biodiesel to buyers, which SXCS approves for creditworthiness. SXCS takes assignment of the biodiesel sales contract and the buyer wires payment into a joint account controlled by SXCS and the biodiesel plant. StoneX Commodity Solutions deducts feedstock cost plus a service fee from sales proceeds and forwards remaining funds to the biodiesel plant.