Commodities Risk Management, Hedging & Trading Training Course

Are You Afraid of Heavy Losses Due to Commodity Price Volatility? You Should Be…

…Commodity price volatility and longer term uncertainty regarding the evolution of value chains presents a significant source of risk to your company if you have secular exposures to commodities markets.

Maybe you have a natural long or short position in the commodities you sell or where commodities are key inputs to manufacturing and production processes and consequently a high level of risk exposure to price fluctuation. 

Notwithstanding these risks, market players with a deep understanding of commodities trading markets can benefit from the opportunities presented in both physical and derivatives markets from both a pricing and risk management perspective.

This training gives you a sound understanding of the dynamics of physical and derivative markets, from the inter-related perspectives of real economy dynamics – from “top down” analysis of macro factors such as economic and geopolitical developments through to “bottom up” sectoral trends and related issues such as freight and trade finance – and trading, where opportunities may exist to reduce both cost and / or risk through insightful and holistic commodity market analysis.

You also walk away with a comprehensive understanding of the major global commodities markets, including energy, metals, agricultural and industrial commodities and also, through specific case studies, a deep understanding of the markets most relevant to your own businesses. 

The training covers the trading of commodities “over-the-counter” in spot, forward and swap markets as well as exchange traded contracts in futures and options and highlights the pros and cons of each trading type. 

Strategies adopted by the principal players in specific markets are also reviewed as well as the key role played by investment banks and hedge funds in derivative and arbitrage strategies.

By the End of This Course:

• You’ll have a deep understanding of the machinations of physical and derivative commodities markets
• You understand the impact of macro factors on specific markets including the key players and marketplaces in each type of commodity and their roles in determining short, medium and longer term supply and demand conditions
• You’ll have practical knowledge and skills to take advantage of opportunities in the market, as well as developing effective longer term strategies for stabilising your firms’ earnings and reducing risk.

Commodities Trading & Markets Course Agenda / Syllabus Highlights

• Key commodity market factors
• Fundamentals I: What drives commodity markets in the long run?
• Value chain dynamics
• Demand analysis:  Case study
• Principal trading markets
• Shorter term commodity analysis and trading strategies
  • Medium Term dynamics
  • Spot & Forward market dynamics
  • Short term dynamics
  • Introduction to commodities market trading tools
• Risk management and hedging strategies
  • Background context: risk management approaches
  • Risk analysis
  • Using derivatives and other instruments to manage risk
  • Scenario analysis
• Optional example commodity market specific case studies that may be added(*available to Group Q&A and Private Zoom Coaching plans)
  • The Energy Complex: Energy and Power markets
  • Other hydrocarbon value chains
  • Industrial metals
    • Elemental
    • Processed
  • Precious metals
  • Agriculture
    • Softs
      • Cocoa
      • Coffee
      • Sugar
      • Cotton
    • Grains
      • Wheat
      • Maize
      • Barley
    • Oils
      • Soybean
      • Palm

DOWNLOAD the course information booklet for more detailed information about this training.