Managing the Price Risk of Physical Cocoa through the Futures Market

Welcome to this important industry focused two-day course provided by ICE and the Federation de Cocoa Commerce (FCC). In today's volatile global cocoa market, effective risk management is essential for businesses involved in cocoa production, processing, and trading. This course is designed to provide participants with the knowledge and skills necessary to navigate the complexities of cocoa price risk and utilize futures contracts as a strategic tool for hedging against adverse price movements. Whether you are a cocoa producer, processor, exporter, or trader, this course will equip you with practical insights and strategies to protect your business from market uncertainty and optimize your risk management approach. Through a combination of theoretical concepts, practical examples, and hands-on exercises, participants will gain a deeper understanding of cocoa market dynamics, futures trading mechanisms, and risk management strategies tailored to the cocoa industry. Join us, and a range of expert industry speakers, on this educational journey to enhance your ability to effectively manage the physical risk of cocoa, through the futures market, and safeguard your business against market volatility.

Course Information

Price £1,850 + VAT
Duration 2 days
Location London
Available Dates
Oct 09 2024  Register Now

Who Should Attend

All those involved in the physical cocoa supply chain. Those wishing to understand better how the futures market can help reduce risk in the physical trade.

Booking Information

Tel: +44 (0) 20 7065 7706

Course Content

This is a two-day course will provide an insight into:

- The relationship between ICE Cocoa Futures and FCC physical contracts

- The importance of convergence in physical and financial markets

- How Futures work

- The concept of risk

- Hedging a physical trade

- The role of Clearing

- How to set up a Futures account

- The requirements for a delivery on the Futures market and how it occurs

- What effect the European Union Deforestation Regulation (EUDR) will have on the cocoa market

- The use of ICECoT in managing compliance and trading under EUDR

- How to hedge cocoa products

The working agenda by day is below:

Day 1

08.45 - Welcome

09.00 - Overview of Risk

10.00 - Financial Risk: The two markets, Physical and Futures

11.00 - Break

11.20 - Group Discussion 1

12.30 - Lunch

13.30 - What are Futures?

14.30 - What is the difference between physical and futures transactions and what is a basic hedge?

15.30 - Break

15.50 - Group Discussion 2

16.20 - Role of the Clearing House

17.20 - Importance of Convergence

18.20 - End of Day

19.30 - FCC hosted dinner

Day 2

08.45 - Welcome to Day 2

09.00 - How to set up and manage a futures account

10.00 - Delivery procedures for futures

11.00 - Break

11.20 - Group Discussion 3

12.30 - Lunch

13.30 - Sampling and Grading procedures for physical and futures deliveries

14.30 - Futures and Cocoa Products - how does that work?

15.30 - Break

15.50 - The effect of EUDR on convergence

16.20 - ICE CoT and EUDR conformance

17.30 - End