Futures, Assumptions, Risk and Markets (FARM)

US - The recent dramatic rise and fall in milk and grain prices and the accompanying challenges for producers underscores the need for greater risk management training.

30 September 2009

2 minute read

North America

Producers will be given the opportunity to listen to international experts speak about futures and options contracts, trading on the Chicago Board of Exchange, forward pricing, margin protection and other risk management strategies to help producers stay profitable, at a six-part workshop presented by Virginia Cooperative Extension and Virginia Department of Agriculture and Consumer Services.

Producers may choose which sessions to attend but are advised to attend them all. If you are unable to attend in person, all workshops are available live online.

The schedule of workshops is as follows:

15 October 2009, 10am - 12pm: This workshop is designed to help participants better understand what the futures markets are, how trade in conducted, and the difference between a hedger and a speculator. The economic outlook for the current state of the US economy will be presented.

22 October 2009, 10am - 12pm: This second session will help participants understand how futures contracts work and review the role of the hedger vs. the speculator. The economic outlook for the US Dairy industry will be presented in the last hour.

29 October 2009, 10am - 12pm: Session three will have a different order. The first hour will feature a presentation by French Dairy officials from Paris, France regarding the French and European Dairy industry and economic outlook. The second hour will focus on the aspect of options trading, how they work, and who might use them.

5 November 2009, 10am - 12pm: This workshop will focus on the relationship of basis and futures prices. A discussion regarding farm energy, bio-fuels, and grain outlook will finish up this workshop.

12 November 2009, 10am -12pm: Session five will present the basics of fundamental and technical analysis for commodities. At the end of this session economic outlook for agriculture input costs will be presented.

19 November 2009, 10am - 12pm: The sixth and final session will focus on the individual participant’s need and ability to trade based on what they’ve learned in the previous five sessions. This session will look into market prediction probability. At the end of the session the outlook for the US American farm will be presented.