AE 300 - Grain, Oilseeds & Pulse Crop Marketing

3 Credits

This course provides an in-depth analysis of both the pricing and delivery options available to the farm manager. Students learn how to analyze the grain, oilseed, and pulse crop markets.

Rationale:
 

This is a required course for the Production and Finance Concentration of Agribusiness and Crop Technology students. Marketing is an important and complex task for the farm manager. It is important that the farm manager and agri-business personnel have a sound knowledge of the marketing options and how to take advantage of these options. This course is very useful for those students who wish to do the following:

1. Participate in marketing on farms that have a grain enterprise.
2. Seek employment in grain merchandising or related agri-business industries.
3. Understand how the domestic and international grain marketing system works.
4. Operate a livestock enterprise, which buys grain.

1. access, calculate, and compare open market grain prices for immediate and deferred delivery.
2. explain the commodity trading process.
3. utilize hedging as a risk management strategy.
4. utilize business speculation as a risk management/cash flow management strategy.
5. utilize open market contracts as a risk management strategy.
6. utilize options on commodity futures contracts as a risk management/cash flow management strategy.
7. utilize the decision tree as an aid in delivery and pricing decisions.
8. utilize fundamental analysis as an aid to pricing.
9. utilize technical analysis as an aid to pricing.
10. develop a marketing plan.

Class handouts.

Access to DTN and Internet.

Optional Resource Materials:
None

Conduct of Course:

This course involves approximately 42 hours of classroom lecture that is a blend of notes, discussion and video. The laboratory sessions are approximately 28 hours. This course includes lectures, labs, case studies and assignments.

Classroom and laboratory attendance is considered vital to the learning process and as significant to the students’ evaluation as examinations and reports.

1. Students having a combination of excused and/or unexcused absence of 20 percent or higher for the scheduled course hours will be required to withdraw and will automatically receive a “RW” (required withdrawal) for the course, regardless of any other evaluation results. (RW is a failing grade.).
2. An excused absence is one that is verified with your instructor. Verification should be prior to the absence or the next class day following the absence. Verification of the absence may take the form of a note from your doctor/College nurse regarding illness, or a note from another instructor regarding a field trip or other activity, or authorization by your instructor. An unexcused absence is anything NOT verified by the instructor prior to the absence or the next class day following the absence. 

It is the students’ responsibility to know their own absentee record.

Normal hours are 8:30 a.m. to 6:30 p.m., with potential for evening courses, exams or extended field trips. Students are expected to be available for classes during these times.

Content of Course:
 

1. Grain Prices
2. Commodity Futures Trading
3. Hedging
4. Business Speculation
5. Open Market Contracts
6. Options on Futures Contracts
7. Decision Tree
8. Fundamental Analysis
9. Technical Analysis
10. Marketing Plan