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

  • Futures Market Fundamentals
    An introduction to the futures markets, including terminology and mechanics. We will explore the role of the clearing service provider, regulation of the futures industry and the importance of the margining system to the integrity of the exchange. (2 CPE Credits)

  • Futures Pricing
    The relationship between commodity futures prices and the price on the cash (spot) market, and an introduction to commodity price management.
    (2 CPE Credits)

  • Contracting Choices
    The obligations, benefits and other considerations of basis contracts and cash forward contracts, as well as the various alternatives to cash contracting, such as futures and options strategies. (2 CPE Credits)

  • Managing Price Risk
    Using futures to hedge the risk of unfavorable movements in feed and hog prices. (2 CPE Credits)

Day 2 – 08/29/2012

  • Managing Basis Risk
    Using futures spreads to manage the difference between cash and futures prices. (2 CPE Credits)

  • Adding Flexibility with Options
    Using options to establish a risk/return balance that matches the needs of a given hog operation. We will explore the factors that contribute to the cost (premium) of an option and how to exploit the asset value of options to minimize net cost and maximize profit margins as markets change over time.
    (2 CPE Credits)

  • Selecting the Right Strategy for Your Needs
    A comparison of the impact on profit margins from various option strategies alone and in combination. We will work through several examples to illustrate the development of a hedge position, and the process of managing those positions over time. (2 CPE Credits)

  • Applying Concepts Learned
    An interactive price management simulation to reinforce and test new skills. Participants will make several price management decisions over a marketing period and evaluate the resulting effect 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

Learning Objective

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.

Learning Level

Basic

Prerequisites

None.

Advanced Prep

You may want to review our educational site, Margin Manager.

Delivery Method

Live

Enroll

If you prefer to enroll by phone,
please call 1.866.299.9333.

Price

$550

Dates & Time

Aug 28th – Aug 29th
8:30 A.M. to 4:30 P.M. daily

Location

120 South La Salle Street, Suite 2200
Chicago, IL 60603

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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.

The information contained in this publication was created by Commodity & Ingredient Hedging, LLC and should not be copied or redistributed without its consent.

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