Dairy Margin Management Seminar – TBD

Dairy Margin Management Seminar - TBD
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.

TBD

Location TBD

$550 (Free for CIH Clients)

Basic

Coming Soon

Dairy Margin Management Seminar – TBD

Day 1 Topics Covered

  • Identifying Your Exposures
  • 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.

  • Contracting Alternatives: Tools to Manage Risk
  • 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.

  • Adding Flexibility with Options
  • 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.

  • Applying Concepts Learned I
  • 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
  • Best practices in margin management, starting with a strategic approach that includes the creation of an objective margin management policy to guide decision-making.

  • Tailoring Your Strategy as Markets Change
  • 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.

  • Applying Concepts Learned II
  • 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

TBD
TBD

Location

TBD

Registration fee includes breakfasts, lunches and dinner on Day 1. 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

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    February 01, 2024

    About The Author

    Garrett Iverson

    Dairy Margin Management Seminar – TBD

    Day 1 Topics Covered

    • Identifying Your Exposures
    • 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.

    • Contracting Alternatives: Tools to Manage Risk
    • 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.

    • Adding Flexibility with Options
    • 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.

    • Applying Concepts Learned I
    • 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
    • Best practices in margin management, starting with a strategic approach that includes the creation of an objective margin management policy to guide decision-making.

    • Tailoring Your Strategy as Markets Change
    • 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.

    • Applying Concepts Learned II
    • 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

    TBD
    TBD

    Location

    TBD

    Registration fee includes breakfasts, lunches and dinner on Day 1. 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

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