KSU IGP Institute
Course participants Justin Diehm and Gabriela Moraes work together during the grain buyers risk management simulation.

MANHATTAN, KANSAS, U.S. — The IGP Institute (IGP) held the IGP–KSU Risk Management Course Aug. 1-5, that focused on better trading practices. Seven professionals traveled to the IGP Institute’s Conference Center in Manhattan, Kansas, U.S, for the training, five of which stayed for the advanced section on the final two days of the course.

Jay O’Neil, senior agricultural economist and course manager, said the risk management course was well received by participants.

“It is always interesting when we get to the last day and conduct the trading simulation and watch how the participants apply what they have learned,” O’Neil said. “During the simulation exercise, we are able to observe how the students balance their urges to speculate in the futures market against their needs to manage the risk for their respective companies. This brings the objectives of the course into focus for everyone.”

The course was split by level of experience — basic and advanced. Students learned many skills and techniques for risk management, including why futures markets exist, fundamental and technical analysis, futures spreads principles of hedging, principles of risk management and basic trading, and principles of futures and options trading. During the advance session, participants learned risk management through the use of option and over-the-counter (OTC) markets.

Participant Gabriela Moraes, market analyst at M.Dias Branco in Jaboatao dos Guararapes, Brazil, said she enjoyed everything about the course and it was a good experience for her and her company.

“I learned what we could do to minimize our risk when buying grains,” Moraes said. “I also learned a lot about other things in the market, like U.S. wheat and U.S. grains.”