Ag Marketing Clubs in Central Iowa and a Women Marketing Grain group, all coordinated by Iowa State University Extension and Outreach, participate annually in the Iowa Commodity Challenge - an online crop market simulation game. This experiential learning model is offered each November when participants are assigned 75,000 bushels of corn and 25,000 bushels of soybeans stored at a local co-op with charges for monthly storage. Particants develop their own marketing plan and are issued user name and passwords to: www.commoditychallenge.com
They have until early March to market all bushels using the March futures contracts for both corn and soybeans. The marketing tools available include spot cash sales, forward contracts, futures hedges, buying puts and selling cash bushels and buying futures or call options.
Monthly meetings during the winter months are offered along with recorded webcasts and handouts. The Challenge provides the oppportunity for participants to learn first-hand about the use of basis, cost of ownership, cash and forward contracts in addition to the use of futures contracts and both put and call options.
|Conference||2013 Extension Risk Management Education National Conference|