Covantis Launches CircleOut App, Revolutionizing Agri Commodity Trading in

Leading the charge in digitizing the agricultural commodities industry, Covantis has unveiled its innovative CircleOut application, making waves in Brazil and Argentina’s soybeans, soybean meal, and vegetable oil markets. In its first week, CircleOut has significantly streamlined trade execution processes, managing over 750 contracts and identifying nearly 800,000 tonnes of circles and washouts, showcasing its transformative potential. This development marks a considerable stride in addressing the complexities and inefficiencies plaguing trade execution in the agri commodities sector.

Revolutionizing Trade Execution

CircleOut’s deployment heralds a new era for agri commodity trading firms, enabling them to net positions before operations commence. By automating the identification of circles and washouts based on the contract positions provided by the market, the application efficiently reduces trade exposure and execution complexities. This innovation not only eradicates the tedious manual process traditionally involved in identifying circles but also mitigates the risk of exposing open positions and optimizes the use of working capital. Ted Swinkels, Managing Director of Cefetra BV, lauded Covantis’s initiative, highlighting the application’s ability to solve real industry problems and its delivery of a valuable solution.

Industry Embracement and Impact

The industry’s reception of CircleOut has been overwhelmingly positive, with over 25 companies, including agribusiness giants like ADM, Cargill, and Bunge, signing up in the first week alone. This wide-scale industry adoption underscores the application’s compelling value proposition and its potential to revolutionize trade execution processes. According to Petya Sechanova, CEO of Covantis, the agri industry is primed for collaboration. By leveraging CircleOut to automate circles and net positions identification, the market can achieve greater efficiency, optimize working capital, and reduce counterparty credit exposure, thereby enhancing the overall effectiveness of the string markets.

Looking Ahead: The Future of Agri Commodity Trading

The early success of CircleOut in Brazil and Argentina’s agri commodity markets is a promising indicator of its potential to bring about long-term positive changes in the industry. As more companies adopt this technology and contribute to the platform’s growth, the agri commodity trading landscape is set to become more efficient, transparent, and streamlined. This shift not only benefits the companies involved but also has the potential to positively impact global food supply chains by reducing costs and improving the speed and reliability of trade execution.

With its initial success, CircleOut is poised to become a pivotal tool in the transformation of agri commodity trading. As the industry continues to embrace digital solutions, the future looks bright for stakeholders across the globe, promising a new era of efficiency and collaboration in the agri commodities sector.