Commodity

Commodity
Boutique Commodity Operations

Mitcor is a boutique commodity trading house in relation to its need to satisfy client requirements for operations and in support of its own production requirements. Mitcor uses the technique of structured commodity finance in its operation when dealing with commodities. The commodities we are involved in trading and supporting cross a wide spectrum of the world markets.

Structured commodity finance (SCF) as covered by Mitcor is split into three main commodity groups: metals & mining, energy and soft commodities (agricultural crops).

Structured Commodity Finance (SCF)

Structured Commodity Finance is a financing technique utilized by Mitcor in support of primarily producers, trading houses and associated lenders. Commodity producers stand to benefit from SCF by receiving financing to ensure cash flow is available for maximum output with the intention of repaying the loan once exports begin. Trading houses employ SCF largely as a means of risk mitigation to reduce their exposure to a single country or commodity; this finance model allows them and us to mitigate any supply, demand or price shocks. Our associated lenders seek out opportunities to help assist commodity producers in accessing new markets and customers, this also benefits them through gaining interest on the loan.

SCF provides liquidity management and risk mitigation for the production, purchase and sale of commodities and materials. This is done by isolating assets, which have relatively predictable cash flow attached to them through pricing prediction from the corporate borrower and using them to mitigate risk and secure credit from our strategic lender. A corporate client  therefore borrows against a commodity’s expected worth.