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Dec 05, 2024
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AGB 235 - Intro to Agricultural Markets Credits: 3 Lecture Hours: 3 Lab Hours: 0 Practicum Hours: 0 Work Experience: 0 Course Type: Open Focuses on the futures market and how it can be used as a marketing tool. Major areas of study include hedging, speculation, price forecasting, spreading, technical and fundamental analysis. The use of options as an economic marketing tool will be covered. Competencies
- Summarize the current industry issues
- Explain the economic impact global markets have on the state, national, and world economies
- Define issues that have historically affected the industry
- Define issues that impact the future of the industry
- List career opportunities
- Analyze commodity marketing and risk management
- Identify types of inherent risk in commodity production such as weather, basis risk, interest rates, storage costs, storage timing, etc
- Interpret commodity charts
- Calculate carrying costs
- Calculate carry in the market place
- Discuss the role crop insurance and other federal programs play in risk mitigation
- Evaluate technical and fundamental charting
- Identify price cycles, industry and seasonal production trends
- Chart a commodity
- Chart option premiums
- Calculate costs of both buying and both selling puts and calls
- Chart basis
- Calculate basis
- Explain the role of basis in setting local cash pricing
- Use historical basis data in selecting optimal hedging times
- Calculate break even costs for commodities
- Interpret seasonal market trends
- Characterize components of an agricultural market
- Discuss the influences commodities can have on each other
- Identify contract variables, sizes, amounts, trading time, daily limits, locations, etc
- Identify terminology involved with commodity trading ( short, long, buy, sell, Futures, Options, Cash Forward, etc)
- Outline regulatory agencies that are involved with trading at the commodity exchange along with their functions such as CME, CBOT
- Discuss the role a clearinghouse plays in a market
- Describe the role of the speculator in a given market
- Describe the role of the broker in an exchange
- Incorporate market simulation technology (Commodity Challenge)
- Demonstrate how a commodity trade takes place using marketing tools
- Develop a marketing plan
- Implement a marketing plan
- Practice setting and lifting hedges
- Outline key components of a marketing and procurement plan
- Evaluate cash marketing alternatives
- Identify methods of reducing price risk
- Diagram the art of placing and lifting a hedge
- Construct a T diagram consisting of Futures market movement both up and down when using marketing tools such as Futures, Options, and Forward contracts
Competencies Revised Date: AY2023
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