April 29, 2003

Computerized Trading Games Featured at Risk Management Course

Fargo, ND, USA - Crop buyers from fourteen nations are gaining new strategies for making better grain purchases this week at the Northern Crops Institute. Risk management tools and marketing tactics are the focus of the week-long "Advanced Grain Procurement Strategies" short course. The course ends Friday, May 2.

A new feature of the course is a hands-on computerized risk management exercise. "We are adding a computer session to give the participants an opportunity to have some hands-on experience with risk management software called "At Risk," said Dr. David Bullock, a course instructor who works for the Minnesota Department of Agriculture.

"The software allows them to enter a risk portfolio model into an Excel spreadsheet and then use the "At Risk" add-in to look at some of the characteristics of that portfolio-what the risk is and what the expected return is," Bullock concluded.

The Advanced Grains course complements the basic Grain Procurement Strategies for Importers course that NCI offers each September. "After privatization became widespread throughout the world, a greater need for grain procurement courses became evident," said Pat Berglund, NCI Director.

"In the fall of 1996, we put together a team of grain traders, U.S. Wheat Associates, and NCI staff to formulate this new advanced course, aimed at managing the risks better. As the markets become more complex, the buyers need more sophisticated skills to make informed decisions. This course provides those skills," Berglund concluded.

Northern Crops Institute supports regional agriculture and value-added processing by conducting educational and technical programs that expand and maintain domestic and international markets for northern-grown crops.