Grain merchandising is an art form. This one-day workshop is designed for everyone from new hires to current traders wanting to hone their skills. The course will:
- Introduce attendees to how the process of merchandizing moves grain from the farm, through the commercial storage system and ultimately to the end user or exporter.
- Explain the futures and options markets and how/when to use those derivative markets to hedge physical grain positions.
- Get attendees thinking about their position as an aggregate basis position rather than a series of individual transactions.
- Examine the interactive relationship between basis, futures, and forward spreads and learn how to respond to carry and inverse environments.
- Show some simple grain accounting to get a sense of what your accounting software is doing but more importantly, to dig deeper into how the daily flow of grain is accumulated into a position, creating opportunities in the local basis market.
- Introduce attendees to some basic grain origination contracts that can be used to increase a company’s handle.
This event is held in partnership with R.J. O’Brien & Associates.