To help update and educate the Vietnamese market on the latest risk management tools available, the U.S. Grains Council (USGC) partnered with the CME group, the world’s leading derivatives marketplace that offers futures and options trading for risk management, to conduct the Advanced Options Risk Management Workshop in Ho Chi Minh City, Vietnam in late June.
Forty-six participants from across Vietnam came together to hone their skills using CME’s latest platforms. The workshop aimed to enhance participants’ knowledge and understanding of advanced options tools and strategies to better dampen industry market risk.
“Vietnam’s feed demand is growing at a tremendous pace, and buying flat price just isn’t feasible going forward into the future. Futures and options are a great way to maximize buying power while minimizing risk,” said Chuin Shern Lee, USGC marketing manager for Southeast Asia and Oceania.
With the recent surge in volatility observed in agricultural commodity prices, effectively managing price risk has become a critical aspect of sustainable business operations. The workshop offered ways to equip participants with the knowledge and skills necessary to navigate and mitigate the potential consequences of market fluctuations and enable consistent, de-risked imports of U.S. agricultural products into the country.
The workshop covered a wide range of topics, including trends in ag option volume and open interest; volatility and skew; and a demonstration of CME QuikStrike, a platform that offers free pricing and analytic tools for a variety of asset classes and products. Furthermore, the workshop included various hedging strategies, empowering participants to make informed decisions and safeguard their businesses against potential risks.
Through progressive programs like this, the Council is enabling the Vietnamese market to expand to its fullest potential. With its feed industry producing more than 30 million metric tons of feed, Vietnam imports more than 12 million metric tons of corn each year and more than 1.3 million metric tons of distiller’s dried grains with solubles (DDGS).
About The U.S. Grains Council
The U.S. Grains Council develops export markets for U.S. barley, corn, sorghum and related products including distiller’s dried grains with solubles (DDGS) and ethanol. With full-time presence in 28 locations, the Council operates programs in more than 50 countries and the European Union. The Council believes exports are vital to global economic development and to U.S. agriculture’s profitability. Detailed information about the Council and its programs is online at www.grains.org.