Cocoa Association of Asia and Singapore Management University has introduced an online course called “Introduction of Cocoa Trading”, which they claim is the first of its kind in Asia.
The Cocoa Trading Programme will happen on 5-6 November 2020. This two-day foundational course is intended for new entrants to the Cocoa industry wishing to build up their knowledge. The course is priced at $950
This course provides individuals who have had little or no experience with cocoa, to develop competencies, skills, and knowledge needed for a career in this industry.
Upon completion of the programme, participants will appreciate the value of Cocoa throughout history fully, develop a deeper understanding of the commodity, the manufacturing process, know-how the cocoa trading chain functions, and risk management.
There is not much information we could find on the website, which is unfortunate. But we requested a brochure and now can confirm the course will be run by Deborah Lim with the listed bio saying:
Deborah is an industry veteran with more than 40 years of experience in the trading of commodities such as Rubber, Metals, Cocoa and Coffee. Deborah joined Lewis & Peat, a global commodity trader, in 1981. Her passion for cocoa trading has taken
her all over the world where she gained vast knowledge of and experience in the entire value chain.
Deborah served on the board of Lewis & Peat Singapore and United Polymer Sdn Bhd Malaysia in 1986 and was the Head of Cocoa, Asia Pacific. She then started ICBT Far East, a physical cocoa and coffee physical broker, in collaboration with ICBT Ltd. UK and subsequently founded Cocotique Pte Ltd, an international cocoa trading company.
She has taught Cocoa Trading on the ITI@SMU since 2008 and was instrumental in pioneering the first cocoa programme for undergraduates on the International Trading Track in the Singapore Management University.
The Curriculum is as follows:
Phase 1 – Introduction
- Introduction ‐Brief history of cocoa
- Expansion between the 18th and 19th Century and first modern Bar
Cocoa growing regions
- Where they are grown
- Significant producing countries
- Varieties of cocoa
Supply and demand
- Top producing countries
- Producers’ pattern of growth
- Crop surpluses /deficit
- World production & grinds vs. supply and demand
- Asian production
- Asian grind
- Important fundamental & technical factors
Phase 2 – Farm to Manufacturing
The physical supply chain
- Cultivation
- Two‐crop harvest
- Diseases
- The supply chain
- Shipping documentation
- Example of a contract
- Basic quality note
The manufacturing flow
- Quality checks on beans’ arrival
- Fluctuating beans characteristics
- Production flow
- Pricing
The international trade
- Incoterms
- Common terms used in Cocoa Trading
- Trade Associations
- Association rules commonly used
- Why do Associations exist?
- Dispute referred to arbitration, process and appeal
The Futures Exchange
- Exchanges and its market participants
- Benchmarking
- ICE USA and Europe
- Margins
- Market participants
- Trading the Futures in relation to physicals
- Reading a cocoa market report
Commodity Finance
- What is Trade Finance?
- At origin
- On inventory
- Afloat
Payment Terms
- Letter of Credit
- Cash against documents
- Cash against delivery
- CAD on trust via TT
Anatomy of Trade
- Hypothetical trade exercise