Agricultural Risk Management

Overview

This course provides an in-depth examination of price risk mitigation tools and techniques that will help you survive and even thrive in today’s volatile agriculture markets. Learn which hedging tools are best suited to various market environments. Understand the benefits and limitations of each hedge instrument and how best to apply them given your company’s view of outright price risk as well as basis risk.


Why You Should Attend
Have you hedged too early? Applied suboptimal trading tools? Are you familiar with all the hedging instruments used in today’s agricultural markets? Let Richard Weissman, a world-renowned author and specialist in agricultural risk management, share techniques, analysis and insights that only his thirty-plus years of trading and risk management experience can bring. You’ll gain a practical understanding of outright price risk, basis risk and optionality risk as well as the pros and cons of mitigating each of these risks.

What You Will Learn

  • Best practices for a commercial hedging entity
  • Establishment of a corporate risk policy
  • Designing the risk management program
  • Determining hedge objectives and strategies
  • Implementation of a daily mark-to-market
  • How to reduce spot market exposures and guard against price spikes
  • Technical and fundamental analysis; how and when to combine them
  • How to hedge with agricultural futures, options and swaps
  • Hedge implementation, monitoring and adjustment
  • The differences and similarities of futures, options, swaps and spot markets
  • Real-time hedging examples for various products in agriculture and livestock markets using futures and options
  • Setting up futures, options, and derivatives accounts
  • How to initiate and sustain protocols required for external auditors Margins and futures brokers
  • What is the basis between spot and futures?
  • How and when to hedge the basis
  • Commonly employed tools and techniques for agricultural risk managers
  • Popular options spread strategies used by commercial hedgers