TTC 105 Soft Commodities and Agricultural Futures Trading

The TTC Soft Commodities and Agricultural Derivatives Trading Certificate has been created by market professionals for those already in the industry or seeking to join the industry who require a large body of knowledge to be made available to them quickly and efficiently. Graduate students, commodity company employees, traders, technology workers, market regulators, insurance companies, academics, and those involved in trader risk management often find it difficult to gain relevant and useful knowledge outside of their sphere of influence in the workplace, knowledge that has an immediate impact on their working efficiency and potential success.

As a practical qualification, the Certificate covers a large area of industry knowledge and is geared at those newly entering the market as well as professionals who are looking to update and broaden their knowledge.

The Soft Commodities and Agricultural Futures Trading Programme looks at the trading opportunities of soft commodity markets and agricultural futures including soy bean, soy bean meal, wheat, corn and coffee. Attendees will trade these commodity futures via a professional electronic trading front-end system.

  • Using a variety of data sources we look at how detailed trade analysis and risk appreciation supports derivatives trading. 
  • We use industry technology applications like Bloomberg and Thomson Reuters Eikon as well as professional derivatives trading front-end systems like TT X-Trader
  • We initially focus on the character and definition of traded assets as well as the main price drivers and then incorporate these into the main commodity cycles
  •  We feature soft commodities and Cereal and Grains, Oilseeds, Meat, Dairy and other Agricultural Commodities

There are many ways to manage trading and risk management activities in commodities markets and the course examines these options. We look to:

  • Describe the functions of the softs and agricultural futures markets
  • Demonstrate trading strategies and techniques to trade these markets
  • Show how pre-trade analytics can be used to assist trading decisions
  • Describe the range of tech trading tools available
  • Detail the technical analysis options available to traders and which types of analysis work well for commodity markets

Curriculum 

The Soft Commodities and Agricultural Futures Trading Programme looks at the trading opportunities of soft commodity markets and agricultural futures including soy bean, soy bean meal, wheat, corn and coffee. Attendees will trade these commodity futures via a professional electronic trading front-end system.

  • Using a variety of data sources we look at how detailed trade analysis and risk appreciation supports derivatives trading. 
  • We use industry technology applications like Bloomberg and Thomson Reuters Eikon as well as professional derivatives trading front-end systems like TT X-Trader
  • We initially focus on the character and definition of traded assets as well as the main price drivers and then incorporate these into the main commodity cycles
  • We feature soft commodities and Cereal and Grains, Oilseeds, Meat, Dairy and other Agricultural Commodities

There are many ways to manage trading and risk management activities in commodities markets and the course examines these options. We look to:

  • Describe the functions of the softs and agricultural futures markets
  • Demonstrate trading strategies and techniques to trade these markets
  • Show how pre-trade analytics can be used to assist trading decisions
  • Describe the range of tech trading tools available
  • Detail the technical analysis options available to traders and which types of analysis work well for commodity markets

Day 1

Global distribution of agricultural production-risk

  • Growing complexity shown in graphics, data and pricing 
  • Incorporating Geopolitical risk
  • Recognising and factoring Localised risk
  • The impact of Exchange rate risk
  • Counterparty and credit risk

The Changing Nature and cost of Energy

  • Combustible energies versus clean energies 
  • Oil, natural gas and electricity futures for managing energy costs
  • Hedging energy risk using oil futures and options
  • The US Dollar and asset substitution

Market mechanics

  • The cyclical nature of commodity markets
  • Macro drivers for derivatives traders and risk managers
  • Governments and Trade organisations
  • The pivotal impact of multi-currency risk exposure 
  • How to hedge currency/energy risk simultaneously

Weather Risk – case studies and scenarios

  • Available Datasets and how to interpret them
  • Use of data analysis tools and techniques
  • Now casting and Predictability models
  • Modelling and trading Catastrophe risk – catastrophe bonds 

The Traded markets and Exchange traded commodity products

  • OTC markets and products
  • ICE – range of data sources and traded products
  • CME – range of data sources and traded products
  • Speculators/Hedge funds/investment funds – infiltrating and distorting commodity markets
  • Impact of passive investing instruments in Commodity trading risk
  • Incorporating basis and the forward Curve into trading strategy
  • Index products and passive investing
  • S&P GSCI Agriculture Index
  • Dow Jones – UBS Grains Sub Index Total Return
  • iPath Bloomberg Agriculture Total Return
  • iPath Bloomberg Livestock Total
  • E-TRACS USB Bloomberg Commodity

Day 2

Derivative Trading strategies

We use realtime professional front-end trading technology to trade commodity futures

  • ‘Fair value’ and cost of carry
  • Carry (‘contango’) and ‘backwardation’ – trading the curve
  • Calendar spreads: background, methodology and trading

Hedging and pre-trade analysis

  • Trading Volatility and momentum using industry software with real world examples
  • Producer prices/PMI/Inventories statistics and their impact
  • Calculating and understanding Basis risk
  • Historical Price and Volatility analysis from a technical standpoint 
  • Swaps

Trading Strategy

  • Momentum trading using futures
  • Spread trading -traditional and cross-asset trading
  • Synthetic futures trading 
  • Forward/futures pricing
  • Extreme hedging using options
  • Positive hedging
  • Curve trading and Yield enhancement using derivatives 
  • Combinations trades and substitution using currency exposure
  • The role of the US dollar and the battle to replace it – Iran-china

Volume, volatility, open interest and options trading 

  • Options strategies including bull/bear spreads, ratio call and put spreads, 
  • Volatility trades – straddles and strangles
  • Momentum trading with options – synthetics
  • Exotic options 

Day 3

Technology Disruption

  • How market participants can manage the risk of technological disruption
  • Production, trade and shipping/delivery 
  • Trade collaboration networks
  • Sustainable risk management for agri-businesses
  • New techniques for Hedging weather with derivatives– frosts, floods and fires

Fintech and the growth of targeted tech applications 

  • Blockchain in the value chain
  • How Blockchain works for commodity markets
  • Risks and opportunities associated with adopting new technologies

Market Ethics 

United Nations technical cooperation programme – projected food insecurity in Africa. Food insecurity is perhaps one of the biggest challenges we face globally. How do we approach this from a trading and risk management perspective? 

Real – world experience: Practical Trading and strategy session

The last part of Day 3 is spent formulating, managing, backtesting and incorporating a practical trading strategy using industry software

Dates 

Soft Commodity and Agricultural Derivatives Trading Course: 

Monday, Tuesday and Wednesday 8th, 9th 10th July 2019
Monday, Tuesday and Wednesday 15th, 16th 17th July 2019
Programme Pricing for the Full 3-Day Programme:

 

Time: 9.30am-5.00pm
Venue: London, UK
Fees per attendee: £3795 + VAT
Students: £1995 + VAT
Upon Completion, attendees will receive: The TTC Soft Commodity and Agricultural Derivatives Certificate.  

Please note: Full Payment is due 30 days before the course starts.  

All efforts will be made to offer a fair response to cancellation of the course attendance. Course attendance can be cancelled at any time prior to the course commencing, in writing. If attendance is cancelled with over 30 days remaining before the course starts, a full refund of monies paid minus a £40 administration charge will be issued. If a cancellation request is received with between 29 and 7 days remaining before the course starts, a deduction of 10% in addition to the administration charge will be made before a refund is issued. If attendance is cancelled less than one week before the course starts, 70% of the monies paid in addition to the administration charge will be deducted before a refund is issued.
Full Payment is due 30 days before the course starts.
There are only 20 available places on the Course so contact us early for booking and course information. Contact [email protected] for Course registration details.
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Duration: 8th, 9th 10th , 15th, 16th 17th July 2019

Testimonials

"I chose to study the Finance Trading Programme (FTP) as I wanted to get a more hands-on approach on complex financial topics. During normal lectures, we don’t have the time to see whether the theories we learn are applicable to the real world, and if they are, how. The Trading Programme provides me with the practical tools that I will need in the real world to analyse the markets and based on that, take trades." - MSc Investment and Finance Student

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