UNDERSTANDING COMMODITY MARKETING AND PRICE TRENDS

Course Length

1.5 hours

Overview

This course assists in equipping you or your producers with the skills and tools needed to maximize the profitability of grain sales and reduce risk factors that contribute to monetary losses. A component of the Commodity Marketing & Risk Management suite of courses, this course builds a foundation for understanding more complex strategies and programs. It helps you understand how prices are driven by dynamic global supply and demand and how trends can move in three different directions. The course provides a method for evaluating supply/demand using different techniques, and will set the stage for more complex analysis.

Course Topics

• Supply/demand analysis
• Price trends and patterns
• Price discovery mechanisms

Knowledge and Skills

In this course, you will learn to:

• Describe the components of the supply/demand equation
• Demonstrate an understanding of how weather impacts pricing
• Explain how prices are affected by supply and demand
• Define the three major movements that price can make over time
• Describe the four components of price movement
• Explain how trends and movement can affect your market strategy
• Demonstrate an understanding of how price discovery mechanisms are used to gauge supply/demand and the price needed to clear the market
• Describe the four types of discovery mechanisms
• Identify which price discovery mechanism would be useful for a given marketing situation