Department of Agricultural and Consumer Economics

Office for Futures and Options Research (OFOR)

Workshop Date Description Instructors
Intermediate to Advanced Agricultural Hedging October 5 - 6, 2009 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