No offerings have been identified for this subject in 2015
MGT362 Commodity Pricing Management (8)
Abstract
With the escalating volatility of commodity markets the need for rural producers, marketers and their agents to have sound price risk management strategies is becoming imperative.
This is an applied subject that will provide students with the opportunity to develop marketing strategies and selling alternatives, and examine different approaches as the seasons and price changes unfold (e.g. using a simulation exercise based on real life prices). Students will gain and build on first hand experience of the advantages and disadvantages of a range of pricing methods available and the skills to track the continually changing forces that drive market change. |
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+ Subject Availability Modes and Location
Continuing students should consult the SAL for current offering details prior to contacting their course coordinator: MGT362
Where differences exist between the handbook and the SAL, the SAL should be taken as containing the correct subject offering details.
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Subject information| Duration | Grading System | School: |
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| One session | HD/FL | School of Accounting and Finance |
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Assumed Knowledge| This subject relates to the management of commodity prices, predominantly those of agricultural goods. A good knowledge of agricultural production cycles and seasonal influences on production is assumed. |
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Enrolment restrictions|
Not available to students who have completed RMBU3643. |
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| Related subject(s) |
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FIN526 Paired Subject
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Learning OutcomesUpon successful completion of this subject, students should:
* be able to demonstrate understanding of international and domestic agricultural commodity markets;
* be able to demonstrate understanding of forces within these markets and assess their likely impact on commodity prices;
* be able to demonstrate understanding of suitable marketing strategies from a range of marketing alternatives to minimize risk and maximize return;
* be able to demonstrate understanding of the benefits of bench marking the outcomes of commodity pricing management;
* be able to demonstrate understanding of the risk management tools available and explain how these tools might best be used to protect producers from the volatility of price movements;
* be able to demonstrate understanding of and prepare an appropriate commodity marketing strategy to achieve price objectives. |
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SyllabusThe subject will cover the following topics:
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Defining Commodity Pricing Management
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Establishing Price Objectives
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Identifying the Components of a Commodity Price
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Gathering Information to develop a Market Outlook
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Pricing Alternatives - Cash & Pool Contracts
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Pricing Alternatives - SWAPS and Futures Contracts
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Pricing Alternatives - Options
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Managing Basis
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Establishing Policy and Strategy
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Amending Strategy
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Benchmarking and Performance Measurement
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The information contained in the 2015 CSU Handbook was accurate at the date of publication: 01 October 2015. The University reserves the right to vary the information at any time without notice.
