IGP–KSU Introduction to Futures Markets and Hedging (Virtual)

In the global agricultural commodity markets, cash ("physical" or "spot") markets are distributive markets that move commodities from producers to end-users. Futures are a type of forward derivative market that functions primarily as a financial market where physical delivery between seller and buyer can occur. Hedging is a practice that reduces commodity price risk but does not eliminate the risk of the convergence and divergence of cash and futures markets. The risk that one undertakes when hedging with futures markets is called basis risk, and understanding basis is the key to successful hedging.

Options on futures contracts function like insurance (with policy owners and underwriters) and can be integrated into hedging strategies by producers, merchants, and end users of agricultural commodities worldwide. Those who market, purchase, and trade commodities on a global scale have inherent foreign exchange risk in those transactions and must identify and cover that risk in a hedging program. This course will apply these concepts and practical methodology to the corn, soybean, wheat, and cotton markets.

Dates: Dates to be Determined
Duration: 4 weeks – (8) 2-Hour Sessions (Tuesdays and Thursdays) 5:00–7:00 pm U.S. Central Time
Course Fee: $1,975 (Includes course materials)
Maximum Participants: No Limit