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 Cattle Margin Management
Overview of how cattle feeding operations can protect profit margins by modeling forward profitability and utilizing various contracting alternatives.
(2 CPE Credits)
Price Risk Management and Contracting Alternatives
Cash market versus futures market, understanding basis, price risk versus basis risk, contracting choices. (2 CPE Credits)
Networking Cocktail Reception
Immediately following the afternoon session, hosted by CIH.
Review of Day 1 Concepts
Ensure participants have a strong understanding of foundational concepts before presenting new material. (2 CPE Credits)
Managing Basis Risk
Using futures spreads to mitigate the risk of strengthening basis values on feed purchases and weakening basis values on cattle sales. (2 CPE Credits)
Comprehensive overview of options, including definitions/ terms, contract specifications, components of premium, expiration and exercise/assignment to futures versus offset. (2 CPE Credits)
Core Options/Futures Strategies
Using futures and options positions to establish a fundamental level of protection against the risk of higher feed and feeder-cattle costs as well as lower fed-cattle prices. An introduction to delta and looking at an option position in futures-equivalent terms will also be discussed along with volatility considerations in position structuring. (2 CPE Credits)
Core Strategy Adjustments
Factors — costs and benefits — to consider when weighing strategic position adjustments as prices fluctuate over time. (2 CPE Credits)
Applying Concepts Learned
An interactive price management simulation to reinforce and test new skills. Working in teams and guided by a trainer, participants will make several price management decisions over a marketing period and evaluate the resulting effect on net margins. The session will conclude with a review of the opportunities and implications of the various hedging strategy alternatives.
Participants will be furnished with a computer and position analysis software for the simulation. (2 CPE Credits)
Registration fee includes breakfast, lunch, the evening cocktail reception and all seminar materials. Click to register by email.
For more information, please call 1.866.299.9333.
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 La Salle Street, Suite 2200
Chicago, IL 60603
Please use the following links for more information to help with your travel plans:
There is a risk of loss in futures and options trading. Past performance is not indicative of future results. 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.
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