Commodity futures and options markets - Terminology, Mechanics of trading, Basis, Hedging, Speculation, Technical Analysis 2. Fundamental factors affecting agricultural price - Production and supply, Consumption and demand, Exports and imports 3. Institutions - Market channels, wholesalers, and retailers 4. Role of government - Market information, grades and standards, regulations, and trade barriers 5. Three hour exams and a final using a combination of problems, subjective, and objective questions.
Students use quotations from the cash and futures markets to maximize returns.
Term report includes the results of individual transactions, sources of information used for each decision, and analysis of the various decisions and transactions. Current operating costs are used to obtain costs of production, break even price, and returns from the sale of livestock and crops in the problem. Daily futures market speculation in all commodities is possible and encouraged.