INTERVIEW 62 FEED & ADDITIVE MAGAZINE January 2026 the preferred method to hedge weather risk was in the futures and options market on the underlying commodity price movements. Now, we are seeing specific interest in products that hedge precipitation and climate events! While these products are still rather new, the Chicago Mercantile Exchange offers weather derivatives. Hedgepoint also offers these tools, also known as Parametric Derivatives. We use public data sources to create a benchmark and track parameters like: Precipitation, Temperature, Wind Speed, Solar Radiation, and Soil Moisture. We then model those parameters to build custom structures based on our client’s regional and operation needs to protect them from extreme weather events. Besides regular farmers and commodity traders, we see this tool as an alternative for private credit funds, for instance, that have collateral in form of future commodity crops. I would encourage feed manufacturers to explore these products for their sourcing area regions. If there is a localized flood for example, the broader commodity market may not be as impacted as the feed company who relies on that specific impacted region for their sourcing needs. About Chris Trant Chris Trant started his career in the commodity industry as a college intern at Daniels Trading. After graduating from Miami University (OH) with a degree in International Business and History, he worked in various commercial roles with Bunge North America, Green Plains, and Informa / HIS Markit-S&P Global prior to Hedgepoint. Trant lives and works in Chicago and enjoys geopolitical books, cooking Italian food, and running along the lakefront. Happy Holidays www.feedformulationlatam.com Happy Holidays from Feed Formulation! As we approach the end of 2025, we’d like to thank our partners, exhibitors and industry friends for an inspiring year. We’re excited to share that pre-booking for Feed Formulation Latin America 2027 is now open. Reserve your participation before 1 May 2026 to secure early access and the best stand options for the upcoming edition. For more information or to pre-book, scan the QR-code or contact Nick Mouthaan at nickmoutahaan@victam.com or +31 (0)6 21 26 43 98 Wishing you joyful holidays and a wonderful start to 2026! Join us 14-16 September at Expo Center Norte São Paulo, Brazil
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