Margin Management For Lenders – TBD

This program is designed to help credit analysts, loan officers and bank managers understand the risk management strategies of their agricultural producer clients.

Day 1 Topics Covered

• Margin Management Fundamentals

An introduction to modeling forward profitability in the agriculture industry. We will explore how producers can use the full range of contracting alternatives in both the cash and futures markets to secure favorable margins.

• Cash Market vs. Futures Market

The risks and benefits of physical (spot) market contracts compared to exchange-traded contracts, and how the two types can complement each other.

• Margin Requirements and Projections

Understanding performance bond requirements and their potential impacts on cash flow and credit lines.

• Hedging Relationships and Risks

The requirements of the various parties involved in the hedging process, including futures commission merchant (FCM) clearing and account control agreements, trade execution and account funding.

• Position Reconciliation

Matching open and closed position P&L to physical purchases and sales, and determining net exposure.

Day 2 Topics Covered

• Core Strategies

Basic exchange-traded structures that complement existing physical contracts to manage the risk of both higher and lower prices.

• Managing Strategies Over Time

Position adjustments that can help producers address risk and margin exposure, and take advantage of opportunities as prices change.

• Applying Concepts Learned

An interactive price management simulation to reinforce and test new skills. Participants will make several price management decisions over a marketing period and evaluate the resulting effect on net margins.

Seminar Details

Date and Time

TBD

TBD

Location

TBD

Registration fee includes breakfasts, lunches, an evening cocktail reception and all seminar materials. For more information or enroll by phone, please call 312.596.7755.

NASBA Continuing Education Credits

CPE Credits: 16

Commodity & Ingredient Hedging, LLC is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. Website: www.nasba.org.

Learning Objective

Participants will be introduced to the mechanics of the futures and options markets and the terminology related to the futures industry. Participants will also learn how to utilize risk management strategies to manage commodity price risk.

Prerequisites

None

Delivery Method

Live

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