USSEC Holds Risk Management Seminar & Workshop in Turkey
- General News
USSEC sponsored and organized a risk management seminar and workshop on March 17 and 18 in Istanbul, Turkey.
50 people from Turkey, Romania and Poland attended the conference, which is part of a continuous activity sponsored by USSEC. Seminar participants included feed millers, crushers, poultry integrators, dairy integrators, fish integrators and traders who are key decision-makers in terms of choice of ingredients used in the feed production.
The main objectives of the meeting were to teach the feed producers and traders (including all the integrators) about international trading objectives and the marketing of U.S. Soy and soybean meal, and to increase the share of U.S. Soy in Turkey and other Europe countries.
The use of U.S. Soy in this region is driven by importers and crushers. Many of the crushers, large feed producers, and integrators are not familiar with the trading methods and so they do not really trade, but buy and sell on the same day without doing any hedging, future, and options, etc.
USSEC’s risk management program covered many topics: an overview of world soybean and soybean meal markets; the U.S. grain production and marketing systems; basis of trading and hedging; future markets; principals of futures and options trading; and simulations done about purchasing under the guidance of Robert Breshnahan of Trilateral, Jeffry Kuijpers of the CME Group and Jay O’Neil of Kansas State’s IGP. The clear objective of all presentations, simulations, and interactions with participants was to promote USSEC and U.S. Soy products in terms of real advantages.
The presentations led to a favorable introduction, background, communication and exchanges on or around U.S. soy and soybean meal. All this was resumed in practical points worked out during the last session with simulation examples to address the specific benefits of trading highlighted. Overall, the response of attendees was positive and the multiple questions posed reflected the high level of interest. The discussions during breaks as well as following the Q&A sessions were lively and constructive. Another important point was that the participants were chosen from the real decision makers of the feed industry and included mainly purchasing and trading representatives who decide where to import raw materials. Improving these decision makers’ knowledge with the basis of trading, hedging, and markets will help to increase the share of U.S. Soy.
Continued effort in this region is expected to increase the demand for U.S. Soy and create loyal U.S. Soy customers.