A £50 per tonne move in wheat prices this season has meant profitability levels achieved by many grain producers, livestock feeders and grain processor has been a lottery, based on timing decisions to buy or sell. In many cases, market movements have swamped efforts to cut costs or improve efficiency.
The highly unpredictable nature of the cereals markets, complicated by climatic, economic and political factors, is the future face of the cereals industry that businesses need to learn to manage if they are to survive.
HGCA's forthcoming risk management seminar, Market Volatility - Turning Threat into Opportunity, will help give a better understanding of how to use futures and options to lessen risk.
"The emphasis will be on practical examples, case studies and workshops rather than detailed technical issues," said Julian Bell, economist at HGCA. "This will ensure it is well tailored to those not directly involved in day-to-day trading."
International experts will give an insight into risk management practices in the US, Canada and Australia.
The workshop sessions will provide training in applying risk management principles to three industry sectors: grain and oilseeds producers, livestock producers (pigs, poultry, beef) and processors (millers, maltsters, distillers). These will be run by a Chicago-based expert team of risk management trainers from Commodity Ingredient Hedging.
The industry seminar is being organized jointly by HGCA, the futures exchanges Euronext.liffe and Chicago Board of Trade, and National Australia Bank. Full details of the seminar and details of how to attend are available on the HGCA website, www.hgca.com
