Case Study: a leading high-purity alcohols supplier achieves multimillion-dollar hedging gains with ClimateAi

Leveraging ClimateAi’s Monitor Yield Outlook to Enable Multimillion Profits in Hedging Strategy

A leading high-purity alcohols supplier worked with ClimateAi to improve its contracting, hedging, and pricing decisions for corn, a key input in its commodity supply chain. Faced with volume security challenges, market volatility, and the need to make large sourcing commitments months in advance, the company wanted better early insight into weather and climate impacts on corn availability and price.

ClimateAi provided ClimateLens Monitor Yield Outlook, which translated seasonal weather risks into corn yield forecasts for key sourcing regions and was updated weekly throughout the season. The outlook helped the company anticipate cold stress during planting in 2022 and later adjust positions as yield expectations improved in 2023, supporting a strategy that generated at least $2 million in net new alpha and, depending on timing, as much as $6 million in gains from call options.