Loading the page.
Explore operating risks by sector.
Explore the business risks that standard hedges leave uncovered across five sectors.
SectorsThe sectors we cover
1
Choose a sector to see a worked example and the risks Oros can address.
- River and barge basis
- Interior freight from the elevator
- Inputs delivered before planting
- Low-water draft limits
- Tariff lines on imported goods
- 01Agriculture and physical goodsA crop’s local price can differ from futures because of where and when the business buys or sells it.BenchmarkCBOT soybean futuresCarried by the businessBarge bid on the Illinois RiverOpen sector
- 02Logistics and supply chainsFreight-rate hedges do not cover the cost of canal draft limits, lock closures or port delays.BenchmarkPanamax freight rateCarried by the businessCargo per transit at a draft limitOpen sector
- 03Critical mineralsMetal hedges usually leave the terms between mines, processors and refiners uncovered.BenchmarkCobalt metal priceCarried by the businessCobalt hydroxide payableOpen sector
- 04EnergyA facility’s power bill depends on its location and hours of use, which can differ from the hub price it hedges.BenchmarkERCOT North Hub powerCarried by the businessPrice at the facility nodeOpen sector
- 05ComputeA data center needs chips, power equipment and a grid connection before it can earn revenue.BenchmarkPlanned capacityCarried by the businessCapacity onlineOpen sector
The shapesHow each spread moves
These diagrams illustrate how costs can move away from a benchmark; they do not show observed market data.
2
- Agriculture and physical goods
The local bid drifts away from futures over a season, with freight, river levels, and the pace of harvest.
BasisIllustrative
Illustrative drawing, not market data. Barge bid on the Illinois River against CBOT soybean futures; the shaded gap between them is the spread. A faint band marks the window a contract would cover.
- Logistics and supply chains
Cargo per transit steps down as the canal limits draft.
Draft limitIllustrative
Illustrative drawing, not market data. Cargo per transit at a draft limit against Panamax freight rate; the shaded gap between them is the spread. A faint band marks the window a contract would cover.
- Critical minerals
The payable for an intermediate jumps when export policy or processing capacity changes.
PayableIllustrative
Illustrative drawing, not market data. Cobalt hydroxide payable against Cobalt metal price; the shaded gap between them is the spread. A faint band marks the window a contract would cover.
- Energy
The node price spikes above the hub in the few hours that set the bill.
CongestionIllustrative
Illustrative drawing, not market data. Price at the facility node against ERCOT North Hub power; the shaded gap between them is the spread. A faint band marks the window a contract would cover.
- Compute
Capacity comes online as equipment arrives and the site connects to the grid, sometimes later than planned.
Capacity rampIllustrative
Illustrative drawing, not market data. Capacity online against Planned capacity; the shaded gap between them is the spread. A faint band marks the window a contract would cover.
Discuss the risks your business faces.
Choose the risk closest to yours, or book a thirty-minute call to discuss it with us.