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Contributor: CME Group

Level: Beginner

Gain an understanding of how buyers and sellers of grains and oilseeds utilize futures and options to hedge their position to manage price risk. This course will enhance the hedger’s understanding of the different strategies available as well as how the basis affects prices.

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Lesson: #1 Buying Futures for Protection Against Rising Prices

Those involved in buying grain and oilseed products are aware of the risks they face from a potential price increase. Grain processors, feed manufacturers, food companies and importers who are concerned about the impact that a price increase could have on their business are constantly seeking ways to mitigate this risk and protect their bottom line.

Lesson: #2 Establishing a Ceiling Price by Buying Grain Call Options

There are many risk management strategies that offer price protection for long hedgers involved in buying grain and oilseed products. Grain processors, feed manufacturers, food companies and importers understand the impact that a price increase could have on their business. It is important that they familiarize themselves with various alternatives for mitigating this risk and protecting their bottom line.

Lesson: #3 Lowering a Grain Purchase Price by Selling Put Options

There are many risk management strategies for price protection during uncertain markets. These strategies can be helpful for grain and oilseed buyers, such as grain processors, feed manufacturers and food companies.

Lesson: #4 Establishing a Grain Buying Price Range

There are many risk management strategies for price protection during uncertain markets. These strategies are helpful for grain and oilseed buyers like processors, feed manufacturers and food companies.

Lesson: #5 Comparing Grain Buying Strategies

There are many risk management strategies that offer price protection against rising markets for long hedgers, buyers of grain and oilseed products, such as grain processors, feed manufacturers and food companies.

Lesson: #6 Selling Futures for Protection Against Falling Prices

Those involved in producing or selling grain and oilseed products are aware of the risks they face from a potential decline in prices. Farmers, merchandisers, grain elevators and exporters, who are concerned about the impact that a price decrease could have on their business, are constantly seeking ways to mitigate this risk and protect their bottom line.

Lesson: #7 Establishing a Floor Price by Buying Put Options

There are many risk management strategies available that offer price protection for short hedgers involved in producing or selling grain and oilseed products. Farmers, merchandisers, grain elevators and exporters understand the impact that a decline in prices could have on their business. It is important that they at least familiarize themselves with various alternatives for mitigating this risk and protecting their bottom line.

Lesson: #8 Establishing a Commodity Selling Price Range

There are many risk management strategies for price protection during uncertain markets. These strategies are necessary for grain and oilseed sellers like farmers, merchandisers, grain elevators and exporters.

Lesson: #9 Increasing Grain Price by Selling Call Options

There are many risk management strategies available that offer price protection during uncertain markets for those involved in producing or selling grain and oilseed products, such as farmers, merchandisers, grain elevators and exporters.

Lesson: #10 Comparing Grain Selling Strategies

There are many risk management strategies for price protection during uncertain markets. These strategies are necessary for grain and oilseed producers and sellers, such as farmers, merchandisers, grain elevators and exporters.

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