USSEC recently invited Trilateral, Inc. to conduct corporate training with Egyptian agribusiness leader WADI Group. In the current environment of low margin returns, WADI’s top management realized it was necessary to achieve a common understanding and level of expertise across their Strategic Development, Planning & Logistics, Purchasing and Financial Analysis departments.
Trilateral provided eight hours of training including “Fundamental Analysis I,” which consisted of the timing and importance of U.S. Department of Agriculture (USDA) reports, building a supply and demand balance sheet for each commodity and showing how fundamental analysts update these tables utilizing weekly USDA crop condition reports. The importance of the “Stocks-to-Use” ratio to determine a market’s trend was specifically stressed. “Fundamental Analysis II” covered the importance of studying intramarket spread relationships. The relationship of the front month contract to a deferred contract is a clear fundamental perspective into demand. Because WADI Group has an inherent short market position, they found it imperative to focus on the subtle changes in intramarket spreads to assist in purchase timing. “Technical Analysis” included long and short-term trend analysis utilizing trend lines and moving averages. Longer-term charts were incorporated to display how the lows of October 2014 related to previous support levels from 2007 to 2009. Trilateral ended the 8-hour session with a current perspective of market conditions and price direction.
Before adjourning, Trilateral administered a final exam covering the material WADI Group was exposed during the 8-hour session. USSEC Regional Commercial, Technical & Marketing Director – MENA Mousa Wakileh reported that all WADI Group participants passed the exam with a high degree on expertise.