Dairy Margin Management Seminar - Boise
The Dairy Margin Management Seminar is designed to help dairy producers maximize their profit margins by effectively utilizing the full range of available contracting methods.
Jan 24 - 25, 2024
Location Boise, ID
$550 (Free for CIH Clients)
Basic
ENROLLDairy Margin Management Seminar – Boise, ID
Day 1 Topics Covered
- Identifying Your Exposures
- Contracting Alternatives: Tools to Manage Risk
- Adding Flexibility with Options
- Applying Concepts Learned I
An introduction to commodity price risk management, focusing on the critical first step of building a risk model for your operation using the futures market to project profit and loss.
An overview of cash contacts, an introduction to options, and a detailed discussion of futures, including capital requirements and daily settlement procedures of margin accounts. Effectively integrating insurance such as dairy revenue protection (DRP) with exchange-traded contracts will also be reviewed.
Core option strategies, and how they 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.
A price management exercise tests your ability to use futures and a basic options strategy to establish and protect a price for a simulated dairy operation through several decision periods.
Day 2 Topics Covered
- Creating a Margin Management Policy
- Tailoring Your Strategy as Markets Change
- Applying Concepts Learned II
Best practices in margin management, starting with a strategic approach that includes the creation of an objective margin management policy to guide decision-making.
Taking an active approach to margin management to improve long-term outcomes. We explore why and how to make adjustment to initial positions to address risk or take advantage of opportunities to capture attractive margins as commodity prices change.
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.
Seminar Details
Date and Time
January 24, 8:30 AM – 4:30 PM
January 25, 8:30 AM – 4:30 PM
Location
TBD
Registration fee includes breakfasts, lunches and an evening cocktail reception. For more information, please call 1.312.596.7755.
NASBA Continuing Education Credits
CPE Credits: 12
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. Website: 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.
Prerequisites
None
Delivery Method
Live
