AGB 235 - Intro to Agricultural Markets

1. Summarize the current industry issues
   1. Explain the economic impact on the state, nation, and the world
   2. Define issues that impact the future of the industry
   3. List career opportunities
2. Contrast commodity marketing and risk management
   1. Identify the major U.S. commodity exchanges and the agricultural products that are traded on each exchange
   2. List regulatory agencies that are involved with trading at the commodity exchange and their functions
   3. Illustrate; with the use of a flow diagram how a commodity trade takes place
   4. Identify methods of reducing price risk
   5. Calculate market basis
   6. Identify contract traded; contract sizes, trading time and daily limits of agricultural contract for the CME, CBOT, and MACE
   7. Identify terminology involved with commodity trading (i.e., short, long, buy, sell, etc.)
   8. Calculate a minimum of one years’ historical basis data on grains and meats
   9. Use historical basis information in selecting optimum hedging times.
   10. Practice setting and lifting hedges
   11. Identify the types of cash marketing alternatives
   12. Identify the types of financial risk inherent in agriculture
3. Contrast commodity marketing and risk management
   1. Interpret commodity charts
   2. Evaluate technical and fundamental charting
   3. Identify price cycles
   4. Chart a commodity and it’s basis
   5. Develop a marketing plan
   6. Review grades and yield program
   7. Identify terminology associated with the futures and options markets
   8. Develop option strategies to be used by producer in buying and selling commodities
   9. Calculate the cost of purchasing puts and calls
   10. Calculate the cost of selling puts and calls