60 Chinese crushers and feed millers participated in USSEC’s 2019 U.S Soybean Trade Risk Management Workshop in Guangzhou on May 23 and 24.
Steven Stasys, senior director of CME Group, introduced how to use soybean option to control price risk, including liquidity trends, relationship-based trading in the ag complex, using options to handle basis risk, and trading/hedging strategies. Chenkai Guo, investment and research director of Maidoupo.com, analyzed protein trading risk management, soybean meal option trading strategy, the protein market outlook, and industry trends. In the simulation phase, all 60 customers were divided into 10 teams to compete their option strategy. The winning team’s members hailed from Jiu San, New Hope and Nan Bao Feed.
Shuiran Wang, futures department manager of Jiu San, said, “Thanks USSEC for holding such a good options training for the China market. The simulation part really helped us to deeply understand how to well use options to control our trading risk.”
Xiaoping Zhang, USSEC Regional Director – Greater China, stressed that risk management training has been held for 16 years in China. USSEC will continue this star program to bring more hedging skills to China’s crushing and feed industry.