BALMAC's physical commodity trading businesses encompass a variety of transactions and trading strategies involving the physical commodity or "cash" markets, the commodity futures markets, and the various relationships between such markets.
Transactions may include firm orders at a fixed price or at a price to be determined in relation to the market price for a commodity prevailing at or prior to the specific future date. From time to time, BALMAC also contracts to buy the physical commodity for its own account not on a pre-sold basis.

The Company utilizes the major commodity futures markets for coffee, cocoa and cotton in New York and London as an integral part of its dealing activities. BALMAC routinely maintains commodity future contract positions in these markets for its own account utilizing a variety of strategies including hedging existing purchases or sales and taking outright positions in anticipation of purchases or sales.