Commodity Markets

Commodity prices have been very volatile, especially since the credit crisis began. Given the global interconnectedness of commodity markets with capital markets, financial professionals need a deeper understanding of how these markets work and what influences their price movements and risks. Increasing pressure to regulate these markets is also changing the commodities investment landscape.

This two day interactive course is tailored for finance professionals who need to understand the mechanics of and products in commodity markets. The course will consist of an interactive lecture, case studies, and in-depth exercises. Additionally, relevant articles highlighting recent market trends in commodity markets will supplement this course.

17-Apr-2012 -- 18-Apr-2012New YorkUSD$2475
NY Institute of Finance - Midtown9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ Mayra Rodríguez Valladares; ] Tue Wed Level: Basic

14-May-2012 -- 15-May-2012StamfordUSD$2475
NY Institute of Finance - Stamford, CT9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ Mayra Rodríguez Valladares; ] Mon Tue Level: Basic

27-Jun-2012 -- 28-Jun-2012Toronto, CanadaUSD$2475
New York Institute of Finance - Toronto9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ Mayra Rodríguez Valladares; ] Wed Thu Level: Basic

31-Jul-2012 -- 31-Jul-2012New YorkUSD$1575
NY Institute of Finance - Midtown9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ Mayra Rodríguez Valladares; ] Tue Level: Basic

CPE CREDITS
14.0
Finance professionals who need to understand the mechanics of and products in commodity markets.
No advance preparation required.
Students will be able to:
  • Identify the different types of commodity markets (energy; metals; softs; grains; livestock)
  • Evaluate factors influencing commodity markets
  • Compare and contrast mechanics of key commodity derivatives
  • Identify mechanics of delivery and settlement in commodity trading
  • Analyze potential changes in the regulation of commodities markets
None.
Schedule Note
The session being offered on July 31, 2012 is a special one-day version of this course that is being offered as part of the Global Markets Sales & Trading Program. Please be advised that all content listed in the Detailed Outline below may not be covered in the single-day offering and the number of CPE credits awarded for this special session is 7.0.
Day I
Module I: What are Commodity Markets and their Use?
  • Compare and contrast the different commodity markets:
  • - Energy (oil; gas; electricity)
  • - Metals (base; precious; strategic; minor)
  • - Soft (coffee; sugar; cocoa)
  • - Grains and oilseeds
  • - Livestock and others
  • Identify risks in commodity markets

Module II: Key Factors Influencing Commodities Pricing

  • Identify key factors influencing commodities prices:
  • - Country and economic risks
  • - Fundamental supply and demand
  • - Weather and external events
  • - Processing demand
Articles for in class discussion - Intertwined rise of food and energy prices. Case studies: Venezuela, PdVSA Brazil, Food and energy diversification

Module III: Mechanics of Commodity Derivatives

  • Identify mechanics of major commodity derivatives: forwards; futures; swaps; options
  • Define energy spreads
  • Define strip trading
  • Evaluate risks of commodity derivatives
Exercise 1 - Participants will split into groups and work with identifying risks of different types of commodity derivatives Exercise 2 - Calculate a crack spread Case Study: Amaranth

Day II
Module IV: Commodities Trading
  • Compare and contrast OTC and exchange trading
  • Evaluate the role of commodities exchanges
  • Identify trading, settlement, and clearing mechanics
  • - Role of clearing house in exchanges
Articles for in class discussion: Evolving role of regulators in commodities markets Role of CME and NYMEX

Module V: Commodity Derivatives Pricing

  • Identify pricing mechanics
  • Define backwardation and contango
  • Examine effect of short squeezes

Module VI: The Current Crisis and its Influence on the Markets

  • Identify Ponzi schemes in the commodity markets
  • Identify key regulators of the commodities markets and their evolving roles
  • - Commodity Futures Trading Commission
  • - SEC
  • Evaluate regulations proposed for the commodities sector

Clients who register for this course will receive a complimentary 4-month subscription to FT.com. The Financial Times is the world's most respected financial newspaper, providing a broad assessment on finance, business and the industrial sector. The move to the electronic version follows an ongoing review of our environmental responsibilities as a global business and as part of the Pearson group. FT.com also has features that are not available in hard copy, such as: Special Reports, Alphaville, editor blogs, education sections and much more! Subscriptions will start within 6-8 weeks of the start of class and are limited to one subscription per client. (Please note: as of May 1, 2011, the electronic subscription replaces the hard-copy 3-month Financial Times subscription.)

Lunch is included for all students taking day classes.