Topics Covered

Introduction to the Futures Market and Profit Margin Management:

Identifying forward profit margins using the futures market as a price discovery tool. Cash market versus futures market, price risk versus basis risk, contracting choices.

Introduction to Options:

Overview of options, including definitions/terms, contract specifications, components of premium, expiration, exercise or assignment, and offset.

Southeast Feed Outlook Discussion

Introduction to DRP:

Comprehensive overview of DRP, including program basis and best use cases.

Core Strategies:

Review of basic futures and options positions typically used by dairy producers to protect the risk of both lower and higher prices, as well as discussion of option margining.

Group Exercise:

Using futures and a basic option strategy, teams will attempt to manage a dairy producer’s historical forward profit margin by initiating coverage and managing those positions.

NASBA Continuing Education Credits

CPE 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. Website: www.nasba.org.

Dairy Margin Management Seminar – Amelia Island, FL

Topics Covered

Introduction to the Futures Market and Profit Margin Management:

Identifying forward profit margins using the futures market as a price discovery tool. Cash market versus futures market, price risk versus basis risk, contracting choices.

Introduction to Options:

Overview of options, including definitions/terms, contract specifications, components of premium, expiration, exercise or assignment, and offset.

Southeast Feed Outlook Discussion

Introduction to DRP:

Comprehensive overview of DRP, including program basis and best use cases.

Core Strategies:

Review of basic futures and options positions typically used by dairy producers to protect the risk of both lower and higher prices, as well as discussion of option margining.

Group Exercise:

Using futures and a basic option strategy, teams will attempt to manage a dairy producer’s historical forward profit margin by initiating coverage and managing those positions.

Seminar Details

Registration fee includes lunch on-site and dinner following class. For more information, please call 1.312.596.7755.

Date and Time

July 25, 9:00am – 5:00pm

Location

Courtyard Amelia Island
2700-1 Atlantic Ave,
Fernandina Beach, FL 32034

Click here for CIH Room Block

NASBA Continuing Education Credits

CPE Credits: 8

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