Margin Management for Lenders

CPE Credits: 16

– Day One

  • Margin Management Fundamentals
    An introduction to modeling forward profitability in the agriculture industry. We will explore how producers can use the full range of contracting alternatives in both the cash and futures markets to secure favorable margins.

  • Cash Market vs. Futures Market
    The risks and benefits of physical (spot) market contracts compared to exchange-traded contracts, and how the two types can complement each other.

  • Margin Requirements and Projections
    Understanding performance bond requirements and their potential impacts on cash flow and credit lines.

  • Hedging Relationships and Risks
    The requirements of the various parties involved in the hedging process, including futures commission merchant (FCM) clearing and account control agreements, trade execution and account funding.

  • Position Reconciliation
    Matching open and closed position P&L to physical purchases and sales, and determining net exposure.

– Day Two

  • Core Strategies
    Basic exchange-traded structures that complement existing physical contracts to manage the risk of both higher and lower prices.

  • Managing Strategies Over Time
    Position adjustments that can help producers address risk and margin exposure, and take advantage of opportunities as prices change.

  • 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 breakfasts, lunches, 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.

Delivery Method

Live

Enroll

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

Price

$

Dates & Time


8:30 AM to 4:30 PM daily

Location

Return Top

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.

Testimonials are not indicative of future success. Individuals providing testimonials were not compensated. 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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