Department of Agricultural and Consumer Economics
Office for Futures and Options Research (OFOR)
| Workshop | Date | Description | Instructors |
| Intermediate to Advanced Agricultural
Hedging CLICK TO REGISTER |
cancelled for December 13-14, 2010 |
This program begins in the middle. After a quick review of hedging, basis and spreads, the instructor dives into hedge scenarios, the practice and benefits of rolling hedges, calculating cost of carry and covering carry charges in futures. Delivery is explained with examples of calculating futures markets delivery to the cash market. A sketchy review of options is provided before moving into practical but more advanced options strategies. The program is wrapped up with a trading game that assigns groups with the task of purchasing decisions for a feed manufacturing facility based on market information that is updated monthly. It is highly recommended that the participant have a solid understanding of futures, spreads and options. Fundamentals of the current world market drivers and situation wraps up the session. | Ag consultant and speaker Sue Goll and OFOR associate Eugene Kunda |
Day 1
9:00 Hedge, Basis & Spreads Review—basis drivers, trading
basis, hedge strategies w/basis, various types of spreads
10:15 Break
10:30 Hedge & Spread Strategies—hedge examples incorporating
fundamental market drivers, rolling hedges, using spreads to
cover cost of carry, etc.
12:00 Lunch
1:00 Hedge & Spread Strategies (con’t.)
2:00 Calculating delivery values & what that means to the
hedger
2:45 Break
3:00 Options & strategies—review, option trading, spreading
options, rolling option positions, delta neutral, managing
option positions, etc.
4:30 Adjourn
Day 2 - Morning
9:00 Options strategies (con’t)
10:30 Break
10:45 Breakout session—small group breakout that
incorporates cash market position, physical plant
objectives, fundamental market analysis, basis analysis &
hedge decision making
12:00 Lunch
Day 2 - Afternoon
The afternoon session provides a thorough understanding of
classical barcharting price pattern analysis. CBOT
agricultural futures contracts will be used as the basis of
the discussion. The session is designed specifically to
impart the skills of constructing and interpreting charts.
Participants will learn how to read buy and sell signals
from the various price formations on the charts. With this
knowledge, traders will be able to determine risk/reward
parameters and develop strategies to make market decisions
in a disciplined and objective manner.
Topics include:
Rationale for technical
analysis
Interpretation of volume
Open Interest analysis
General rule for a healthy
price trend on a futures charts
Seasonality
Trendline construction
Locating support and resistance
Reversal patterns
Continuation patterns
Gap theory
Minor trend change indicators
Mathematical models