Overview

This eCourse consists of two modules. Module 1 explains a range of important futures pricing concepts, such as cost of carry, contango, and backwardation, many of which are particular to the commodities market. A variety of commodity trading and hedging strategies are also discussed in detail.

Module 2 describes the basics of the soft commodities (namely cotton, sugar, orange juice, cocoa, and coffee) traded on global markets, as well as some popular hedging and trading applications for these commodities. As with most agricultural commodities, these commodities are characterized by strong supply and demand fundamentals. These fundamentals are examined in detail throughout this module.

Objective

On completion of this course, you will be able to:
- Identify the key concepts that are relevant to the pricing of commodity futures
- Recognize the main trading and hedging strategies used by commodity market participants
- Define soft commodities
- Describe the supply and demand characteristics of the soft commodities
- Recognize the main trading and hedging applications for the soft commodities

Content

Module 1: Commodities - Trading
Topic 1: Key Pricing & Trading Concepts
Topic 2: Trading & Hedging

Module 2: Commodities - Softs
Topic 1: Introduction
Topic 2: Cotton
Topic 3: Sugar
Topic 4: Orange Juice
Topic 5: Cocoa
Topic 6: Coffee