Agribusiness: Commodity trading and risk management
4 stars based on
This subject introduces students to factors impacting on agricultural production which are beyond the farm gate. It focuses on understanding commodity markets and the price discovery mechanism, local pricing, supply chains, price-currency risks, and the global agribusiness environment.
Risk is examined and the need for forward markets to offset this risk is explained. Problems with supply chain integration will be detailed, while strategies to manage both price and currency risk will be evaluated. School School of Life Sciences. Subject Co-ordinator John Williams. Available to Study Abroad Students Yes. Subject year level Year Level 3 - UG. Identify the major risk variables in agricultural food-fibre supply chains.
Analyse forward commodity market characteristics in commercial trade markets. Apply the principles of market risk management to supply chain situations. Evaluate hedging tactics and calculate hedging risks and the impact of basis movement in order to minimise the impact of risk variables on business profitability. Design flexible strategies to achieve the risk target objectives.
Subject Instance Co-ordinator John Williams. In lectures and tutorials students will discuss and risk management techniques in commodity trading the risk variables in food-fibre supply chains. Students will practice techniques in analytical commodity risk management through exercises. As preparation for this subject, information about basic terminology and concepts will be made available to the students prior to the commencement of the lectures prescribed pre-reading.
This includes notes and exercises. In lectures and tutorials students will research forward commodity market characteristics in commercial trade markets. Through discussions, exercises and assignments risk management techniques in commodity trading will practice interpreting commodity markets. The assignments will focus on Internet real-time market prices and information.
In lectures and tutorials students will discuss how to apply the principles of commodities to market situations. Students will research futures, options and over-the-counter products, risk management techniques in commodity trading commodity data and information sources and interpret commodity charts. In lectures and tutorials students will discuss and examine hedging risks and tactics. Students will practice techniques in analytical commodity risk management risk management techniques in commodity trading exercises and assignments.