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22-04-2019 (Singapore)

P52279 Sugar and Ethanol Pricing
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Sugar and Ethanol Pricing

22 – 23 April 2019 l Mandarin Orchard Hotel, Singapore

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Register 2 Delegates & the 3rd attends FREE!

overview

Key Learning Outcomes

  • Identify and evaluate upcoming trends in sugar trade and pricing
  • Introduction and case studies in Ethanol pricing and risk management
  • Determine the most appropriate approach to manage sugar pricing and pricing risk management
  • Understand the features and applications of different price risk management tools and how they fit with your strategy
  • Sugar future and options in practice
  • Flexibility: How to best adapt your pricing strategies to the dynamic sugar market as circumstances warrant
  • Additional Strategies for using puts and calls in sugar trade

Who Should Attend

  • Sugar Producers, Millers & Refiners
  • Sugar Traders and Commodities Trading
  • Food & Beverage Companies / Sugar buyers
  • Ethanol & Ethanol Fuel Producers
  • Ethanol Traders and buyers
  • Bagasse Cogeneration Plants
  • Export and Import Managers
  • Sales and Marketing Managers
  • Commercial, Business Development and
  • Commodity Trade Managers
  • Procurement and Purchasing Managers
  • Risk and Compliance Managers
  • Commodity Exchanges and Banks
  • Commodity and Trade Lawyers

pricing

Packages Price
2 Day TrainingSGD $3495SGD $3295Early BirdEarly Bird

Early Bird Rate: Register and Pay on or before 28 February 2019

In-House Training
Save up to 40% off normal rates! (8 or more attendees)

Register 2 Delegates & the 3rd attends FREE!
Group rate is based on normal rate of 2-day main conference package only.
For Group Registrations, email register@ibcasia.com.sg or call +65 6508 2401

 

  • Special Group Discount pricing is applicable to groups of 2 or more delegates from the same organisation registering for the same event, at the same time.
  • Fee stated is the discounted price PER DELEGATE. Only one discount applies – either the early bird rate OR the Special Group Discount.
  • All fees stated include luncheons, refreshments and complete set of documentation. It does not include the cost of accommodation and travel.
  • A 7% Goods & Services Tax (GST) is applicable to all Singapore based companies for Singapore venue.
  • View payment terms and bank transfer details, click here »

trainer

Judith Ganes

President, J Ganes Consulting, LLC

Agenda

GLOBAL SUGAR MARKET PERSPECTIVES AND TRADING GUIDELINE COURSE

  • Fundamental Overview
  • Post EU Sugar Regime results
  • Sugar in the new political landscape
  • Global Production and consumption trends
  • Sugar tax and slashed use through sensory technology
  • Currency impacts and emerging market price influence

SUGAR PRICE DEVELOPMENT AND WHY

  • Price trends
  • Today’s market in a historical context
  • External influences to monitor
  • Sugar VS Ethanol: India and Thailand’s quest for flexibility
  • Challenges and/or struggles in the supply chain

STARTING POINT FOR TRADING: FUTURES AND OPTIONS IN PRACTICE

  • The futures contract – standardized and tradable
  • New York: ICE No.11 Raw Sugar Contract VS London No.5 White Sugar Contract
    • The market participants and their role –allowing risk transfer Collapse in spreads and impact on trade
    • Fund investment direction—Seeking Alpha
    • Currency impact and emerging market
  • The Role of the Exchange and Clearing Houses Clearing house manages risk
    • Margin system and how it is calculated
  • Hedgers
  • Speculators
  • Brokers
  • Opening and closing a futures position
  • Types of Orders Delivery or cash settlement
    • Offset or reversing trade
    • Exchange For Physical (EFP)
    • Price risk management with commodity futures
    • Buying and selling commodities – Distinction between Cash/ physical market, Forward, Futures, Options
  • Hedging with commodity futures
  • Risk transfer
  • Fair Value of futures contract
  • Convergence of futures and cash at expiry
  • Arbitrage between futures price and fair value
  • Basis risk
  • Put and call option

THE COMPONENTS OF A CONTRACTED SUGAR PRICE

  • Sugar Futures price VS Cash
  • Influencing factors: Supply and demand, global trade flows
    • Technical analysis
    • Order flow Impact and CFTC Reports
  • Funds (speculators)
  • The commercials (hedgers)
  • Market structure – Spreads and the forward curve
    • Contango/Carry structure
    • Backwardation/Inverse structure
  • Producers Marketing Plan / Consumers Purchase Plan – allocation of tonnage against each futures month to maximize value
  • Substitution and omnibus contracts to maximize value
  • Rolling
  • Physical Premium/Basis Risk
  • Study FOB premium (Regional Premium) – focus on Brazil and Thailand
  • Freight – The freight market and freight differentials
  • Other factors: quality, on time delivery.

SUGAR OPTIONS AND BENEFITS OF USE

  • Key concepts involving the use of puts and calls
  • Key considerations in determining the pricing of puts and calls
  • Volatility calculations: What is the significance of historic and implied volatility?
  • How options fit with your sugar trade strategy

MANAGING THE FUTURES SPREAD (ROLL)

  • Approach in a carry market (producer/consumer)
  • Approach in an inverted market (producer/consumer)

OPTION PRICING UNDERSTOOD (DELTA, GAMMA, THETA AND VEGA)

  • ABC of the Greeks?
  • The basics of Managing Option Strategies
  • Practical application of option strategies

ADDITIONAL STRATEGIES FOR USING PUTS AND CALLS IN SUGAR TRADE

  • Long Only
  • Spreads, Straddles, Credit and Debit Spreads
  • Synthetics: Easy Guide for a Complex Topic
  • Basic and Intermediate Option strategies for producers and consumers (collars, 3-ways, etc)
  • Calendar Spread Options
  • What to be wary of (no free lunch)

MONITORING STRATEGIES – KEEPING AN EYE ON YOUR SUGAR EXPOSURES SUGAR TRADE

  • Management of a hedge position
  • Marking to Market
  • Reporting
  • Worked hedging examples – Producer – User – Speculator
  • Rising market
  • Falling market
  • Summary and Key Take-Away Points

ETHANOL PRICE DEVELOPMENT

  • Brazilian ethanol pricing and sugar price parity
  • What are the calculations for Brazil to shift processing?
  • What Role does the Brazilian Government Play in the availability of supply?
  • What other considerations can influence the movement of sugarcane to ethanol?
  • How does this impact world and Asia’s ethanol prices?

when & where

22 - 23 Apr 2019

Mandarin Orchard Singapore, by Meritus
333 Orchard Road, Singapore 238867
Tel: +65 6831 6062 | Fax: +65 6737 3130
Mobile No.: +65 8298 9442
Contact Person: Tan Ai Li
Email: aili.tan@meritushotels.com
Website: www.meritushotels.com

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