See¬†http://www.informaecon.com/Canada/Canadian_Conference.asp¬†to view brochure. Can also sign-up from this page.
Your profit margins depend crucially on how well you manage your costs of production and¬†your revenues and the inherent time lag between cash outlays and inflows. Time lags of¬†various lengths are a fact of life for everyone involved in the production, merchandising and¬†processing/feeding of grain.¬†
Market prices of grain can change gut-wrenchingly fast, and if you have not done something to¬†protect your margins, you can swiftly move from being in the black to being in the red. This training¬†session will improve your risk management tools so that you sell/merchandise your grain with greater¬†confidence.
As farmers, there are a number of things that can be done to control farm input costs. You likely need¬†to commit to these costs well ahead of harvest even if they are being financed. You may have target¬†profit margins in mind when determining planting intentions. By using futures and/or options in your¬†marketing strategies, much of your targeted margin can be ensured well before planting, while¬†maintaining flexibility in terms of cash contracting.
As grain merchants, particularly those exporting grain, you have to sell well forward of actual delivery¬†of grain as well as originate grain using a mix of forward and spot cash contracts. While some sales¬†can work well simply as back-to-back arrangements, there are many cases where using futures and/or¬†options allow for better margins while reducing risk exposure. Futures and options also allow you to¬†construct a broader array of contract types with confidence that will allow you to attract more bushels¬†without exposing your operation to unacceptable risks.
Grain processors/crushers require raw materials on a consistent basis. Obtaining grain with a mixture¬†of spot and forward arrivals requires you to manage gross margin so that price moves on grain or¬†products do not bump you into the red. Futures and options on futures not only allow you to manage¬†input prices, they can also help you to protect your margins from sudden price moves.¬†
Farmers (and other industry participants) note:
You may be eligible for a partial refund of the course fee as part of the Growing Forward 2 Program.¬†Ensuring that you meet the criteria and claiming any refund is up to you, but we thought that you¬†would appreciate knowing about this potential cost recovery.¬†
To be eligible for a refund, applicants must obtain approval from your provincial agriculture¬†department before attending.
Participants will learn highly valued marketing skills that include:
- BASIC UNDERSTANDING of merchandising and risk management skills
- FUTURES MARKETS and the role of futures in hedging; the use of spreads
- WHAT IS ‚ÄúTHE BASIS‚Äù and why this is important to your marketing efforts, with a focus
- on Canadian specific basis issues
- OPTIONS MARKETS and how those markets are used in price risk management strategies
- HOW CASH AND DERIVATIVE MARKETS work and how those markets are used in
- price risk management strategies
- CASH MARKET CONTRACTING: Development of different types of contracts
- GROSS MARGIN MANAGEMENT: Processing risk management
Our team to develop and deliver this program includes:
- Rob Westmoreland, Executive Vice President, Informa Economics, Inc.
- Nicholas Hoyt, Vice President, Informa Economics, Inc.
- Chris Ferris, Senior Grains Analyst, Informa Economics, Inc. Winnipeg
- Ms. Susan Sutherland, Senior Director, Agricultural Products, CME Group
These professionals have a combined experience of over 100 years operating in and analyzing grain and oilseed¬†markets and risk management situations. They have conducted similar seminars all over the world and have¬†provided risk management and merchandising training to hundreds of professionals.
7:00 - 8:00am ¬† ¬† ¬† ¬† Continental Breakfast and Registration ¬†
8:00 - 8:30am ¬† ¬† ¬† ¬† Introduction and Overview ¬†
8:30 - 9:00am ¬† ¬† ¬† ¬† Markets and Hedging
9:00 - 10:00am ¬† ¬† ¬†¬†CME Group, Futures Market Overview¬†
10:00 - 10:15am ¬† ¬†¬†Beverage Break
10:15 - 11:00am ¬† ¬† Options Market Overview
11:00 - 12:00 Noon Basis Concepts and Hedging Examples
12:00 - 1:00PM ¬† ¬† ¬† ¬†Lunch
1:00 - 2:00PM ¬† ¬† ¬† ¬† ¬†Applied Hedging Examples
2:00 - 3:00PM ¬† ¬† ¬† ¬† ¬†Cash Contracting Methods: Pros and Cons of Different Methods
3:00 -3:30PM ¬† ¬† ¬† ¬† ¬† Beverage Break
3:30 - 5:00PM¬† ¬† ¬† ¬† ¬† Case Studies
5:30 - 7:00PM ¬† ¬† ¬† ¬† ¬†Cocktail Reception
Meals, Beverage Breaks Sponsored by Informa Economics and others
Program Fee¬†is $750 + 5% GST.
For more information, please see:¬†http://www.informaecon.com/Canada/Canadian_Conference.asp, or¬†http://www.informaecon.com/Canada/IADICanadaBrochureDec14.pdf