MKF3961

Commodity trading management

Professor Bill Schroder

6 points · 5-day summer elective (two blocks of 3 days, plus 2 days with 8 weeks in between) · Caulfield · Prerequisite: AFX1300 plus any second-year business subject

Objectives On completion of this subject students should be aware of the different types of risks facing agribusiness managers; understand the principles underlying the establishment of risk management policies; understand the operation of futures and options markets in Australia and overseas; use forward contracts, futures and options to manage price risks.

Synopsis Commodities compared with branded products; factors influencing commodity prices; futures markets; agricultural price instability - causes, effects, methods of price stabilisation; commodity price forecasting - fundamental and technical approaches; trading profitability and risk management.

Assessment Trading exercise/report (2000-3000 words): 20% · Fundamentals/technical analysis assignment (2000-3000 words): 25% · Examination (3 hours): 55%

Prescribed texts

Chafin D and Hoepner P Commodity marketing from a producer's perspective Interstate Publishers, 1989
Schroder W and Williams J Agricultural commodity price risk management Oxford University Press, 1998

Back to the 1999 Business and Economics Handbook