Risk Management Tools Are Essential to Todays Grain Importers
Fargo, ND, USA – Fourteen crop buyers from six nations are at Northern Crops Institute (NCI) for the Advanced Grain Procurement Strategies short course that runs from May 8-12. Participants represent leading flourmills, feed mills, and trading companies in Germany, Japan, Mexico, Singapore, Taiwan and USA.
“World competition for market share and profitability has increased, both globally and among companies within a country. It is very important that our overseas customers know more about price risk management, which is the focus of this course,” says NCI Director Pat Berglund.
Participants learn how to develop, execute, and integrate price-risk management strategies during the weeklong course. Course topics include basis analysis, hedging, options, Value-at-Risk (VaR), trading strategies, current grain situation and outlook, contract specifications, long-term supply relations, ocean freight risk, logistics management, international money market and commercial export trading practices.
Special features during the course include hands-on computer exercises, trading games, and a tour of the Alton Grain Terminal, a shuttle train facility near Hillsboro, N.D. Participants also attend separate wheat and corn breakout sessions to learn specific purchasing strategies.
John Crabtree, NCI's assistant director, coordinates the course. “Grain and oilseed prices can be quite volatile in the global market, so importers need to implement trading strategies that reduce their price risk. As a result of privatization, many players have entered the marketplace. Companies are discovering that they need to develop a risk management program to be successful in a competitive environment,” says Crabtree.
Course speakers include: Dr. William Wilson, North Dakota State University; Terry Garvert, Cargill; Brad Kjar, Alton Grain Terminal; Dr. David Bullock, Informa Economics; Jim Peterson, North Dakota Wheat Commission; Mike Krueger, The Money Farm; Linda Barclay and Mike Klein, CHS, Inc.; John Oades, U.S. Wheat Associates; Ricardo Garcia, FC Stone; Susan Blomer, The Scoular Company; and Chris Davis, Wells Fargo Bank.
U.S. Grains Council (USGC) provides sponsorships for four Mexican participants. Julio Hernandez, Technical Director of the Mexico and Central America USGC office, Mexico City, is their escort. U.S. Wheat Associates (USW) provides sponsorships for five participants from Germany and Taiwan. Ronald Lu, Country Director of USW's Taipei Office, is the escort for the Taiwanese delegation.
Additional information about NCI courses is available on NCI's website at www.northern-crops.com . The next basic Grain Procurement Management for Importers short course is September 25-October 4, 2006. The next Advanced Grain Procurement Strategies short course will be in spring 2007.
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.
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