Financial Markets

Commodity Derivatives

Face-to-face3 days

Enquire about this course today

Course Modules

  • 1. the basics

    • What is a commodity? Where do they come from? The main players and price drivers
    • Spot and forward prices; interpreting the forward curve
    • Combining physical and derivatives
    • Identifying suitable derivatives
    • Cash and physically settled forwards
    • Exchange traded and OTC markets
    • Commodity swaps, Asian options
    • Central clearing
  • 2. metals

    • Commodity or currency
    • Good delivery, allocated and unallocated metal
    • Price references, lease rates and borrowing costs
    • The LME, CME and SHFE
    • Warehousing and delivery
  • 3. energy

    • Crude classifications and pricing
    • Distillates, refining, cracks and diffs
    • Exchange for physical
    • Natural gas, LNG and the impact of shale
    • Physical assessments: Platts, Heren
    • Futures and indexed pricing
  • 4. agriculture

    • Grains and oilseeds
    • Sugar, cocoa, coffee and cotton
    • Agflation, biofuels, seasonality
  • 5. bulks

    • Coal: Thermal and coking
    • Steel
    • Iron ore
  • 6. strategies

    • Using forwards, swaps, loans and prepays
    • Spreads: cracks, diffs and the crush
    • Options and swing
    • Protection and commitments
    • Understanding credit consequences
  • 7. financing

    • Early stage funding, royalties and streaming
    • Reserve-based and corporate lending
    • Fine-tuning the hedge
    • Key aspects of physical contracts
    • Determining the borrowing entity and protecting the value of collateral
    • Tripartite agreements
  • 8. investment

    • Why invest in commodities?
    • Commodity indices, exchange traded products, commodity linked notes
    • Interpreting investor activity and why it matters
  • 9. asessing risk

    • Market, basis, rollover and model risk
    • Operational considerations
    • Avoiding disasters, questions to ask

Related Courses

Strategic Management for Banks

Strategic Management for Banks, Part 2: Implementing the Strategy

6 Modules
Johnny Rizq

Risk Management

Master Class in Trade Finance and Financial Crime

9 Modules
John Turnbull

Corporate Governance

Market Risk Management

6 Modules
Paul Newson

Strategic Management for Banks

Banks: Strategies for Maximising Value

8 Modules