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Apr 29, 2024
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2022-2023 Catalog [ARCHIVED CATALOG]
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AGRI 209 - Agricultural Commodity Marketing
PROGRAM: Agriculture
CREDIT HOURS MIN: 3
LECTURE HOURS MIN: 3
DATE OF LAST REVISION: Spring, 2019
Fundamentals of the mechanics of commodity futures and options, for both grain and livestock. Examine how these markets connect to the cash market and influence risk management and pricing of commodities. Fundamentals of the cash market pricing alternatives available and development of marketing plans.
MAJOR COURSE LEARNING OBJECTIVES: Upon successful completion of this course the student will be expected to:
- Understand the characteristics and functions of the futures market.
- Read futures prices quotes.
- Understand the organization and functions within a futures exchange.
- Understand the functions and purpose of the clearinghouse.
- Understand and calculate trading margins.
- Understand futures trading regulatory specifics.
- Understand the specifics about commodity futures contracts.
- Understand the relationship between cash and futures markets.
- Understand the concept of basis in the marketplace.
- Describe the difference between hedging and speculation in the futures market.
- Understand how market equilibrium is achieved.
- Calculate the result of hedges using futures contracts.
- Understand the specifics about commodity futures contract options.
- Calculate the result of hedges using futures contract options.
- Understand the specifics about cash marketing tools.
COURSE CONTENT: Topical areas of study include -
- Risk and uncertainty
- History of futures markets
- Role of futures exchanges
- Price discovery
- Clearinghouse
- Futures contracts
- Futures contract options
- Hedging
- Speculation
- Futures regulation
- Basis
- Margin and margin calls
- Cash markets
- Price analysis
- Spreads
- Supply and demand
Course Addendum - Syllabus (Click to expand)
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