HO CHI MINH CITY, VIETNAM — To help update and educate the Vietnamese market on the latest risk management tools available, the US Grains Council (USGC) recently partnered with the CME Group, the world’s leading derivatives marketplace, to conduct the Advanced Options Risk Management Workshop in Ho Chi Minh City, Vietnam.

Forty-six participants from Vietnam sharpened their risk management skills using CME’s latest platforms. The workshop was designed to enhance participants’ knowledge and understanding of advanced options tools and strategies to help reduce industry market risk.

“Vietnam’s feed demand is growing at a tremendous pace, and buying flat price just isn’t feasible going forward into the future,” said Chuin Shern Lee, USGC marketing manager for Southeast Asia and Oceania. “Futures and options are a great way to maximize buying power while minimizing risk.”

With the recent surge in volatility observed in agricultural commodity markets, effectively managing price risk has become a critical aspect of sustainable business operations, the USGC noted. The workshop offered ways to equip participants with the knowledge and skills necessary to navigate and mitigate the potential consequences of market fluctuations and enable consistent, de-risked imports of US agricultural products into the country.

The workshop covered a wide range of topics, including trends in ag option volume and open interest; volatility and skew; and a demonstration of CME QuikStrike, a platform that offers free pricing and analytic tools for a variety of asset classes and products. The workshop also included various hedging strategies, empowering participants to make informed decisions and safeguard their businesses against potential risks.

With its feed industry producing more than 30 million tonnes of feed, Vietnam imports more than 12 million tonnes of corn each year and more than 1.3 million tonnes of distiller’s dried grains with solubles (DDGS).