Cargill sees growth in plastics hedging

Swaps unit of commodity trading giant describes increasing need for derivatives on resins prices

Resin pellets: plastics hedging said to be a growing niche market

US-based commodity trading firm Cargill has high hopes for over-the-counter derivatives linked to plastics prices.

The hedging tools are part of the product slate at Cargill Risk Management (CRM), the company's US swap-dealer unit, which is aiming to build market share in commodity derivatives as banks retreat from the business. Cargill says plastics are a natural extension of its traditional focus area, agricultural commodities, since food-company clients often buy large volumes of plastics for