NCI Hosts Grain Procurement Management Course for Importers
2023 participants of Grain Procurement Management for Importers
A group of international grain buyers joined NCI for the Grain Procurement Management Course for Importers held September 11-20, 2023. This course is designed to educate those responsible for purchasing U.S. grain with a focus on the mechanics of grain merchandising. The course combined both hands-on learning and lectures from industry experts as well as experienced educators from the agribusiness world. The group of 33 international importers were able to experience the U.S. grain handling system through tours of a farm, a country elevator, and export grain terminal.
The eight-day course offered tools on how to minimize risk while maximizing profit through volatile markets, lecture on cash and futures markets, and grain merchandisers guide through the full complexity of the international grain markets. The course was led by William Wilson, Ph.D., Distinguished Professor, AES Agribusiness and Applied Economics and an expert in commodity futures trading and consultant to the international grain and food processing industries. Daily lectures and exercises were held both at NCI and in the NDSU Commodity Trading Room, a world-class training facility of the Agribusiness and Applied Economics Department at North Dakota State University (NDSU).
Participants with Dr. William Wilson at the course banquet in Fargo, ND
With the importance of strategic risk management to a successful grain purchase, it became a major topic covered throughout the lectures. Additionally, the course provided an overview of the U.S. grain handling and marketing system and the tools available to assist buyers in purchasing U.S. grain that meets their quality needs at the best value. Participants gained extensive knowledge on hedging to combat price risk, the use of options, and looking at strategies for the future markets through trading exercises and learning every aspect of the grain markets. Value of risk was also touched on; this advanced approach is a key factor for importers to use in their work against the variance of market prices.
Participants with Jim Peterson at the course banquet in Fargo, ND
The course discussed challenges that milling companies around the world are currently facing. There is demand for millers to sell flour up to two years in advance which is difficult to do without sufficient supply. Hedging against the price volatility helps to eliminate risk, so millers can focus on maximizing their profit potential in their operation through the rapid changes of the market. “We want them to understand [how] to hedge against volatility in the grain market and to provide this training [for them to] be long term customers of U.S. wheat,” said Brian Sorenson, NCI’s Program Manager.
The U.S. Wheat Associates sponsored five participants, one of which was Shilpa Bheekarry, an Assistant Commercial Manager from Mauritius. “This course . . . guided us on how to make more effective wheat purchases with minimum risk,” she said, “but also provided an invaluable platform for sharing of experience with the experts and among participants, especially those already importing US wheat.”
Shilpa Bheekarry receiving her course certificate from NCI Director, Mark Jirik
U.S. Wheat Associates and U.S. Grains Council sponsored international importers to be able to extend their capabilities in the field through the education from the Grain Procurement Management Course for Importers. Wheat importers were a majority of attendees this year, so agendas were curated to benefit both sponsored groups throughout the course.
“I think there's different levels of knowledge regarding the overall grain marketing system in the U.S., like from the logistics [of] how grain is marketed, sold here, how the domestic logistics in the U.S. work, and how that adds to the cost of a FOB value,” stated Chad Weigand, USW Regional Director for Sub-Saharan Africa. Weigand discussed how the course provided an abundance of information to participants on how domestic logistics work, how the pricing system works, and what tools are available for risk management in markets today.
“I completed this course with enhanced knowledge in the wheat industry, which will be applied in my work, contributing to the broader community of grain procurement professionals,” said Bheekarry.
The Grain Procurement Management Course for Importers is held annually and is open to international grain buyers associated with private trading companies, milling, feed manufacturing and food processing.