Margin Management for Lenders
This program is designed to help credit analysts, loan officers and bank managers understand the risk management strategies of their agricultural producer clients.
CPE Credits: 16
Day One – Topics Covered
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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 – Topics Covered
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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 would prefer to enroll by phone,
please call 1.866.299.9333.
Price
$550
Dates & Time
Sep 26th – Sep 27th
8:00 AM to 4:00 PM daily
Location
CIH Training Center
120 South La Salle Street
Chicago, IL