Crop Margin Management Seminar
This program is designed to help crop producers develop a marketing edge for their operation by managing their profit margin. Appropriate for all experience levels, this comprehensive two-day seminar encompasses a thorough review from fundamental background of the futures market–including terminology, order flow and margining topics–to position structure and management. The seminar also covers futures and options strategies that allow complete flexibility to optimize the profit in the operation.
CPE Credits: 16
Day 1 – 08/28/2012
Identifying Your Exposures
We begin with an introduction to commodity price risk management, with a focus on the critical first step of building a risk model for your operation by using the futures market to project profit and loss. (1 CPE Credit)
Understanding Your Market Risk
Expanding on the concept of a sound risk model, we examine the components of total cash price risk (futures prices and local basis values) and discuss the value of managing each risk as discrete and independent. (3 CPE Credits)
Contracting Alternatives: Tools to Manage Risk
We lay out the full range of contracting tools you can use to manage commodity price risk with an overview of cash contacts, an introduction to options on futures, as well as a detailed discussion of futures contracts, including capital requirements and daily settlement procedures of margin accounts. (3 CPE Credits)
Applying Concepts Learned I
A price management exercise tests your ability to use futures and a basic options strategy to establish and protect a price for a simulated crop operation through several decision periods. (1 CPE Credit)
Day 2 – 08/29/2012
Adding Flexibility with Options
Following a review of the prior day’s content, we introduce more advanced option strategies and how each can be used to establish the precise risk/return balance that’s right for your operation. You learn how multiple option positions can protect against higher or lower prices, and how to select the right position(s) for your needs. (2 CPE Credits)
Creating a Margin Management Policy
Taking a step back from the tools and tactics of margin management, we highlight the value of a strategic approach and provide guidance on creating an objective framework to guide your future margin management decisions.
(2 CPE Credits)
Tailoring Your Strategy as Markets Change
Using examples, we illustrate how an active approach to margin management can improve long-term outcomes. We explore why and how to make changes to an initial position to address risk or take advantage of opportunities to capture attractive margins as commodity prices change over time.
(2 CPE Credits)
Applying Concepts Learned II
A second, more advanced exercise reinforces your understanding of how to initiate and adjust positions over a marketing period to achieve a margin objective. We conclude by evaluating the choices made at various decision points and the resulting effects on net margins. (2 CPE Credits)
Registration fee includes breakfast, lunch, a Wednesday evening cocktail reception and all seminar materials. For more information, please call 1.866.299.9333.
NASBA Continuing Education Credits
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
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.
If you prefer to enroll by phone,
please call 1.866.299.9333.
Dates & Time
Aug 28th – Aug 29th
8:30 A.M. to 4:30 P.M. daily
120 South La Salle Street, Suite 2200
Chicago, IL 60603
Crop producer Craig Klinge of Crothersville, Indiana explains how the seminar helped him make better marketing decisions.