Commodity trading involves the trade of essential primary products such as metals, grains, oil etc. and intangibles such as interest rates, stock market indices etc. Participation in the global commodity trading business is a key mechanism used by modern organisations to accept or avoid additional risks arising due to uncertain prices of key core commodities. Given the global interconnectivity between commodity markets and capital markets, finance professionals need a sound understanding of how these markets function and the determinants of price movements and risk factors within these markets.
This course aims to critically analyze the structure and features of key commodity markets, factors which influence the prices of commodities, inherent risks associated in different commodities and the role played by key regulators in ensuring end to abusive speculation within the commodity markets.
Our 5-day Commodity trading course will provide you with a better understanding of commodity trading and risk management, as well as the underpinning logistical and financial flows.
• Main commodity groups
• Physical vs. Futures/derivatives trading
• Price discovery
• Principal commercial terms
• INCO terms and shipping documents
• Types of transport: short-sea, deep-sea, road, rail
• Dry Bulk Index and other freight indices
• Storage and inspection
• Title documents
• Payment terms: letters of credit, open terms, telegraphic transfer (T/T)
• Insurance: cargo, marine, credit
• Risk: credit, performance, and FX
• Overview of commodity futures markets
• Futures, swap, options
• Hedging basics
• Spreads and forward prices
• Collection, refining, and smelting margins
• Trading vs. distribution
• Supply & demand basics
• Oil “super contangos” and other strategies
• What role will blockchain and other technologies play in the digitization of supply chains?
• How do we make supply chains more sustainable?
• What do the various green initiatives mean for commodities?
• What does the future have in store for the commodities industry?
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SBS Executive Education
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Flughafenstrasse 3
8302, Kloten-Zurich
Switzerland
Mon – Fri 08:30 – 18:00