Total Continuing Professional Education (CPE) Credits: 16
This seminar is intended for feedlot owners & managers. The focus will be on our margin based approach to identifying opportunities and protecting profits. Participants will be introduced to the mechanics of futures and options and advanced strategies to manage forward profits. We include continental breakfast and lunch both days and you will be our guest for a cocktail reception the first day.
Introduction to Beef Margin Management: (2 CPE Credits)
Looking at forward crushes, historical economics of cattle finishing and modeling a hypothetical feeding operation to project profitability.
Price Risk Management and Contracting Alternatives: (2 CPE Credits)
Cash market versus futures market, basis definition, price risk versus basis risk, contracting choices.
Managing Basis Risk: (2 CPE Credit)
Introduction to futures spreads and applications to hedge both long and short basis risk exposures.
Introduction to Options: (2 CPE Credit)
Definitions, contract specifications, components of premium, terminology and volatility discussion.
Price Management with Options: (2 CPE Credits)
Core strategies to manage both higher and lower prices using option combinations.
Option Pricing Dynamics: (2 CPE Credits)
Discussion of delta and looking at an option position in futures-equivalent terms, volatility considerations and position structuring.
Case Study: (2 CPE Credits)
A look at making adjustments over time and strategic position management to address risk or take advantage of opportunities to improve margins.
Price Management Simulation: (2 CPE Credits)
Integrated online simulation incorporating both futures and options strategies to manage the risk of a beef production operation’s profit margin through a historical market.
Each beef cattle production entity will be equipped with their own computer and position analysis software. Team members will collaborate to make margin management decisions over several different time periods to manage both input cost and cattle sale revenue together as a single unit of risk. The teams ultimately share their strategies and the rationale behind their decisions.
The trainer interacts with the teams throughout the simulation to answer questions, offer guidance and ensure maximum understanding for all team members. The session concludes with a thorough review and summary of the decisions to further emphasize the opportunities and implications of the various hedging alternatives and strategies.
Registration fee includes continental breakfast, lunch and all seminar materials.
Notice of cancellation must be received by 10/03/2012. Cancellations received after 10/03/2012 are subject to a $100 administration fee. Note that you may substitute enrollees to avoid scheduling conflicts.
For more information regarding refund, compliance and/or program cancellation policies, please contact our office at (312) 596-7755.
Commodity & Ingredient Hedging, LLC is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. Web site: www.nasba.org
If you prefer to enroll by phone,
please call 1-866-299-9333.
Oct 17th – Oct 18th
8:30 AM to 4:30 PM Daily
Participants will be introduced to the mechanics of the futures and options markets and the terminology related to the futures industry. Participants will also learn how to utilize risk management strategies to manage commodity price risk.
120 South LaSalle Street, Suite 2200
Chicago, IL 60603
Please use the following links for more information to help with your travel plans:
The information contained in this publication is taken from sources believed to be reliable, but is not guaranteed by Commodity & Ingredient Hedging, LLC, nor any affiliates, as to accuracy or completeness, and is intended for purposes of information and education only. Nothing therein should be considered as a trading recommendation by Commodity & Ingredient Hedging, LLC. The rules and regulations of the individual exchanges should be consulted as the authoritative source on all contract specifications and regulations. Past performance is not indicative of future results.
The information contained in this publication was created by Commodity & Ingredient Hedging, LLC and should not be copied or redistributed without its consent.
Copyright © 2016 Commodity & Ingredient Hedging, LLC. All rights reserved.