Ethanol Margin Management

This program is designed to help ethanol producers manage the price risk inherent in their business. Appropriate for all experience levels, this comprehensive two-day seminar includes an overview of the margin approach along with best practices for effective margin management. A review of the various alternatives to protect margin will be discussed, including OTC markets and exchange-traded futures and options. Hands-on exercises will be incorporated to help participants understand various strategies that can be used to protect margins.

Day 1 – Topics Covered

  • Introduction to Margin Management
    Identifying forward profit margins using the futures market as a price discovery tool.

  • Understanding Options
    A broad overview of option contract features and functions.

  • Adding Contracting Flexibility with Options
    Strategies for managing the risk of both higher and lower prices using futures and various option combinations, including the advantages and disadvantages of each.

  • Using Core Strategies: Group Exercise
    Participants will work in teams to manage a profit margin by initiating and managing coverage using futures and options contracts.

Day 2 – Topics Covered

  • Best Practices of Effective Margin Management
    Introduction to a disciplined approach to identifying and protecting forward profit margin opportunities. Includes a discussion of “delta” as a key indicator.

  • Position Adjustments
    Managing a position as the market changes over time with tactical adjustments to take advantage of opportunities.

  • 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.

Registration fee includes breakfast, lunch and a networking cocktail reception. For more information, please call 1.866.299.9333.

NASBA Continuing Education Credits: 8

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:

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




Delivery Method



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



Dates & Time



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