IADI Commodity Risk Management and Price Analysis

Transcription

1 Informa Economics IEG Agribusiness intelligence IADI Commodity Risk Management An introduction to commodity markets, merchandising and risk management Stephenson Room, Broadway House London Informa Economics IEG 775 Ridge Lake Blvd Suite 400 Memphis, TN Call: Visit:

2 IADI Commodity Risk Management About the Session The International Agri-Professional Development Institute (IADI) provides various training courses for clients in the agriculture, commodity and financial industries, whose responsibilities lie in the commodity trading, merchandising, purchasing, transportation, logistics, supply and demand analysis, and forecasting functions. This training course is designed to provide clients with a thorough understanding of merchandising principles, market fundamentals and strategy alternatives to make a measurable contribution to their company whilst expanding and strengthening their professional network. Who will be attending? This course has previously seen a diverse selection of attendees and experience levels, including those with responsibilities in the following areas: Commodity merchandising, trading and/or processing Commodity and ingredient purchasing Commodity investors and traders Commodity market analysts Finance/auditing in food and agribusiness Transportation and logistics Supply, demand and forecasting analysts Why you should attend? Learn, discuss and action PRICE RISK: Assessment and management FUNDAMENTALS: Supply, demand & price analysis CROP PRODUCTION AND WEATHER HEDGING: Futures and options MERCHANDISING MARGIN MANAGEMENT: Merchandisers and processors BASIS BEHAVIOUR: Cash and futures influence TRANSPORTATION CONSIDERATIONS: Trail, truck and barge POLICY IMPACTS You will understand how to add value to your business, through examining each link in the value chain and gaining sound knowledge of market fundamentals, such as merchandising and risk management, cash and derivatives, supply/demand analysis and price discovery and relationships.

3 IADI Commodity Risk Management About Informa Economics... Informa Economics IEG is a world leader in broad-based domestic and international agricultural and commodity/product market research, analysis, evaluation and consulting. Founded in 1977 and acquired in 2003 by Informa plc, the company serves hundreds of firms, institutions and trade organizations from our headquarters in Memphis, Tennessee. The company's professional depth and experience allow us to provide a wide range of services related to the economic and management concerns of clients. Underpinning these services, Informa Economics principal strengths lie in an expansive information base and a professional and experienced staff. Our employees, Informa Economics primary asset, are well-trained and seasoned researchers and consultants with extensive backgrounds in business and government; most hold advanced degrees in agriculture or related fields. The Informa Economics team has extensive experience in worldwide agribusiness and agricultural policy decision-making. Many Informa Economics employees have gained insights from past government service in senior policy, analysis and advisory positions; from major trade associations; from land grant universities; and as senior managers of leading agribusiness companies. The world's agricultural and food industry is expanding and remains in a constant state of change. Successful businesses and institutions must deal with rapidly shifting market conditions that are driven by international influences, technological innovations, policy shifts, weather conditions, emerging consumers and fluctuating consumer preferences. To continue succeeding in this environment, businesses must have access to reliable market information and authoritative economic consulting services. It is Informa Economics' economic expertise and diverse client base that combine to provide unique insights, risk management and strategic planning for agribusinesses around the world. Course structure and curriculum: Presentations by industry leaders will be combined with participant discussion and interaction resulting in a high impact learning experience. Participants are encouraged to bring their own case studies for consideration by the class. PREVIOUS ATTENDEES INCLUDE: Anheuser-Busch, Inc. Bunge Ltd Cargill Inc. Coca-Cola Company ConAgra Foods Inc. Deutsche bank Dow AgroSceinces General Mills Johnson & Johnson Kellogg Company Kraft Foods Land O Lakes Louis Dreyfus Corp. Mitsui & Co. (USA), Inc. Monsanto Company Nestle (USA) Inc. PepsiCo Quaker Oats Union Pacific Railroad USDA Wells Fargo Bank Credit and many more

4 Class Schedule, Topics (subject to change as necessary) Day 1: Risk Management and Supply and Demand Overview Tuesday, Nov 8: 8.15 am 5.00 pm IADI Commodity Risk Management Kick-Off: The Philosophy and Necessity of Risk Management Sources of Risk The Cost-Risk Tradeoff Evolution of Risk Management within a Company Approaches: Discretionary and non- Discretionary Grain and Oilseed Basics Global Production Basics (Seasonality, Planting Outlooks, Key Time Periods, Weather, Key Origins/ Producers with Historical Examples) Domestic & Global Processing Overview Grain & Oilseed Overview: Export Competitiveness AFTERNOON Supply & Demand as Market Price Drivers Understanding Balance Sheets Government Reports: EU, USDA, CONAB, Statistics Canada, Chinese Reports, etc. Analytic Systems for Supply and Demand Global Balance Sheets: Key Inflection Points, Pipeline Function, etc. Case Studies Focused on Dislocations and Price as a Source of Risk Day 2: Risk Management and Transportation as a Risk Wednesday, Nov 9: 8.30 am 5.00 pm Risk Management Tools Hedging Basics Futures Overview Basis Concepts Cash Contracting Cash Markets & Delivery Concept Basics (CIF & FOB) Understanding Hedge Effectiveness & Cross Hedging Basics Currency Impacts Case Studies Options Basics Overview Understanding the Greeks Options as a Risk Management Tool AFTERNOON Transportation and Logistics Overview Impact of Transportation and Logistics on Commodity Prices How Logistics Drive Basis/Cash Values Day 3: Margin Management and Case Studies Thursday, Nov 10: 8.30 am 2.00 pm Case Studies of Poor or Faulty Risk Management: Pilgrim s Pride, Vera Sun, Metallgesellschaft, etc. Crush Concepts: Understanding How to Manage & Lock Margins Case Studies From Participants: All Real Scenarios! Lunch included

5 Registration Form IADI Commodity Risk Management I A D I Commodity Risk Management Stephenson Room, Broadway House, Tothill Street London, SW1H 9NQ IMPORTANT: Please provide your address to receive special class information. Complete one registration form per person. Name: Telephone: Title: Company: Address: City, State, Zip: Three day pass Day 1: Risk Management and Supply and Demand Overview, Nov 8 Day 2: Risk Management and Transportation as a Risk, Nov 9 Day 3: Margin Management and Case Studies (Half Day), Nov 10 US $2, Includes students materials, lunch and refreshments Payment Information Online Registration FAX (901) Company Check Cancellation Policy: Informa s website: A credit card payment receipt will be sent immediately after your online registration is complete. Circle: Credit Card VISA MasterCard American Express Cardholder Name: Card Number: Expiration Date: Payable to: Informa Economics Checks must be received on or before Tuesday, November 1, Mail to: Ms. Pam Daniel, Program Coordinator, P.O. Box , Memphis, TN % Refund through Friday, October 28 ***NO REFUNDS*** after Friday, October 28 IADI Program Coordinator: Ms. Pam Daniel, (901) , pamela.daniel@informaecon.com Informa Economics Office: 775 Ridge Lake Blvd., Suite 400, Memphis, TN USA