Chinese Industry Learn Soy Buying Techniques
Through Risk Management Training

April 19, 2007 - Chinese soybean crushers, refiners and feed millers learned the basics of trading on the futures market during this week's Risk Management Training held in Dalian, China. The American Soybean Association-International Marketing China (ASA-IM), in cooperation with the Dalian Commodity Exchange and the China Chamber of Commerce for Import and Export of Foodstuff, Native Produce & Animal By-products (CFNA) sponsored the event. The course was presented by Perry Iverson and Chip Whalen from Commodity and Ingredient Hedging, LLC, a Chicago-based company and member of the U.S. Soybean Export Council (USSEC).

Phil Bradshaw, United Soybean Board (USB) Director and Vice Chair of the International Marketing Committee from Griggsville, Illinois, addressed the group and shared how swine growers use the tools provided by the Chicago Board of Trade to manage market risk. USSEC CEO Dan Duran reminded the group of the market information and technical services that ASA-IM overseas offices provide as a value added benefit of buying U.S. soybeans.

Bradshaw and Duran, escorted by ASA-IM China Country Director Phil Laney, also took the opportunity to visit the nearby Beiliang Grain Port, a recently built modern high-tech facility that handles most of the grain and soy imports and exports for all of Northeastern China. Crushing plants owned by two competing companies are also located within the Beiliang facility. In 2006 the port handled 1.3 million tons of soybean imports as well as most of China’s corn exports. Before leaving Dalian, the U.S. contingent also visited the Dalian Commodity Exchange to discuss future joint marketing opportunities with staff members.

USSEC CEO Dan Duran and USB Director Phil Bradshaw observe model of Beiliang Grain Port along with Port staff.

USB Director Phil Bradshaw speaks to Chinese industry about managing risk by trading on the futures market.