Master of Agribusiness Spring 2017, Issue 2

MAB Teams Participate in CME Trading

Challenge - Team “B” Perspective

By: Devon Smolak and Muhammad Abdullah

When we enrolled in the CME Trade Challenge 2017, we had no idea what we were getting into. Our team had little knowledge of the commodities and futures market, but we left the challenge with an ability to use a real-life simulation software utilized in the commodi-ties market, a greater knowledge of the market itself, and a first-hand feel of the pacey nature of the deriva-tives market.

Figuring out the software was the first challenge we had. However, before the practice round began we watched many webinars on how to use the CQG Inte-grated Client software. When the time came for the practice round we were familiar with the software enough to make the layout the way we wanted. Our main objective was to buy low and sell high; we didn’t feel agricultural commodities were going to bring us as much money as bonds, gold and natural gas. Howev-er, when the preliminary round came, we had trouble buying more than one of what we wanted yet we bought what the software allowed us; soybeans, live cattle and natural gas.

Our undoing was buying 12 units of Natural gas. Pric-es dropped dramatically and did not rise in the short two weeks we had. We lost $38,000 of our trade mon-ey in one night. The most realistic option was to take the loss and sell low. This occurred near the end of the last week. We also tried salvaging the situation by purchasing S&P 500 futures but were locked out from trading for one day because of the 20% loss from the Natural Gas trades. We believe that one of our weak-nesses was that we traded too much like stocks, in-stead of long-term contracts. In all, our initial goals were met in that we figured out the complicated soft-ware, got a taste of the commodities and futures mar-ket and we met the daily target of 10 contracts as a team. The greatest advantage of taking part in this competition was that we acquainted ourselves with trading and stocks which is key to optimizing wealth. Our group believed the CME Trade Challenge 2017 added a lot of flesh to what we had been taught in class. We unreservedly encourage others to partici-pate in next year’s challenge.

CME Challenge Team “A” Members

MAB Teams Participate in CME Trading

Challenge - Team “A” Perspective

By: Kyle Joseph

The CME Trading Challenge is a great learning experi-ence for anyone who wants to learn more about com-modity trading. Through this program we had the op-portunity to trade commodities through current and fu-tures contracts.

My Agribusiness graduate team consisted of Iker Huacuja Goya, Chad McLaren, Cameron Novikoff, Blake Ramsey, and myself (Kyle Joseph). We enjoyed having the opportunity to learn this program together.

The CME Trading Challenge requires a great deal of attention and research to really do well. We did not keep up with the contracts like we should have and unfortunately did not do very well in the competition.

Even though we did not do well in the actual challenge, I believe we learned some important skills that we can carry with us after Graduate School. The CME Chal-lenge is useful because students get a chance to trade in real time on real servers and I do not know of any other program that gives you that opportunity.

My team and I are thankful for the competition and we encourage future students to take part if they are given the opportunity.

MABs Attend Interdisciplinary Graduate

Networking Event

By: Edeoba Edobor, Victor Galindo del Toro, Chandler

Johnstone, and Katherynne Padilla

On February 9th, 2016 several MAB students attended

the Graduate and Professional Student Council

(GPSC) hosted Wine Night, which took place at the

Alumni Center.

The Annual Wine Night was started with an informa-

tive presentation by Messina Hof representatives, who

gave a brief history of wine and wine in Texas, specifi-

cally here in the Brazos Valley. The representatives

also went on to explain a little about the business of

Messina Hof and the increased demand they’ve seen

over the last few years. From the presentation it ap-

peared “Texas Wine” is on the incline in terms of sales

and should continue to be a profitable product for the

state. There was even mention that in the near future

“Texas Wine” will be quality enough to compete direct-

ly with “California Wines”.

Shortly after the presentation, all attendees received a

“wine passport” for keeping track of wines which they

tasted and a wine glass. The event was set up as a

networking event in which it had, sitting tables, stand-

ing tables and areas to enjoy cheese and crackers.

Many of the MAB students made new connections

with other Graduate and Processional colleagues.

They took the opportunity to learn more about what

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other departments and colleges are accomplishing as

well as an opportunity to educate others about the

MAB program.

The goal of the evening was to engage Graduate and

Professional students across all disciplines in a social

environment that would allow for networking and pos-

sible future collaboration. GPSC has been hosting

several of these

types of events

throughout the year

in an effort to bring

Graduate students

closer. Given the

rigor that comes

with obtaining a

Graduate or Pro-

fessional degree

more often than not

some students nev-

er get to meet other colleagues across colleges on

campus. Events like the Wine Night help to bring a di-

verse crowd of Graduate and Professional students

together in one place to get the conversation started.

Those who attended would encourage everyone to

attend as many of these events as possible. The next

GPSC networking event is Ice Skating on March 23,

2017.

Rodeo Houston Trip

By: Christina Hilliard

Executives from the Houston Livestock Show & Rodeo

(HLSR) will be hosting MAB students on Friday, March

10, 2017 for a day of behind the scenes tours and

networking with HLSR leaders. Majority of these

same leaders attended Texas A&M and some have

personal connections to former MAB students!

Agenda Overview:

-Tour of Center of Grounds with Allyson Tjoelker, Ex-

ecutive Director, Agricultural Competitions & Exhibitors

and Joel Cowley, President & CEO.

-Meeting with the CFO, Jennifer Hazelton

-Tour Commercial Exhibits and Sponsorship Activities

Discussion with Amber Burda, Executive Director,

Sponsorships, Business & Corporate Development

Continued on page 3

Pictured left to right: Brent Tymrak, Chandler Johnstone, Katie

Padilla, Victor Galindo del Toro, Devon Smolak, Sierra Shields,

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MABs Prepare for Spring Break Fun

By: Iker Huacuja Goya

As spring break gets closer, the MAB students are get-ting ready to relax while getting involved in some of their favorite activities.

It comes as no surprise that after some long weeks with plenty of hard work put in for school, the group is ready for some time off. I

have spoken to my peers and there are plenty of different plans going around. I will give you some insights.

A group of around 5 students are heading to Cancun Mexico aiming to get a nice tan and visit some of the most beautiful beaches on earth. A couple of other students are getting ready for the Rio Frio Fest that takes place in Concan, Texas. Others are heading to Colorado, looking for some skiing opportunities. A small, but brave, group is going on a mission trip to Honduras in order to help those in need donating med-icine and school supplies.

These are just some of the activities our current MABs are getting involved in this spring break before coming back to ace finals and head off to a great summer.

Cooperative Symposium

By: Christina Hilliard

What is a cooperative? According to the Cambridge

Dictionary, it can be defined as “an organization in

which many small farms work together as a business,

especially to help each other produce and sell their

crops.” You may now be left wondering what does a

cooperative and the MAB program have in common.

Well, in a one word answer, “Leaders”.

The MAB program is joining forces with AgriLife Exten-

sion to host “Symposium on Cooperatives: ‘How Do

Businesses Develop Future Leaders?’” on March 30-

31, 2017 at the Clayton W. Williams, Jr. Alumni Center

(Association of Former Students) in College Station to

answer this question.

The symposium will begin with an opening reception

and student case competition on Thursday, March

30th. The opening session will begin at 8:00 a.m. on

Friday, March 31st and will adjourn at 4:15 p.m.

Speakers include:

Kevin Brinkley, CEO of Plains Cotton Cooperative

Association (PCCA)

Gregory McKee, Ph.D., Professor, North Dakota

State University

Keri L. Jacobs, Ph.D., Assistant Professor, Iowa

State University

Philip Kenkel, Ph.D., Professor, Oklahoma State

University

Sanja Zivkovic, Ph.D., Assistant Professor, Texas

Tech University

Enrique Pinon, MAB student

Registration is open, but seats are limited. Please visit

http://tx.ag/coop2017 for details and to secure your

seat today!

Questions? Email mab@tamu.edu

Rodeo Houston Trip

Continued from page 2

Students will have an early start to their day by leaving

campus aboard a charter bus heading to Reliant Cen-

ter at 7:30 a.m. Upon arrival, students will have an in-

side tour of the grounds, operations, and commercial

exhibits, just to name a few.

MABs will also be treated to a Texas style lunch while

at the Rodeo before finishing up the afternoon tours.

A short break of free time will then allow students to

visit vendors, the carnival, and commercial exhibits

before heading to NGR Arena where they will be

greeted by the Santa Gertrudis Breeders International

for the Midcoast International Super Sale.

The MAB program extends a deep appreciation and

Texas size “thank you” to the Houston Livestock Show

& Rodeo executives and staff who worked diligently to

ensure a wonderful educational opportunity.

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Dept. of Agricultural Economics 600 John Kimbrough Blvd., Room 213

2124 TAMU tx.ag/agribusiness

(979) 458-5539 mab@agecon.tamu.edu

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Company? We know some potential

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Let us help you! Email us at

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Upcoming Events

Houston Livestock Show & Rodeo Field Trip Friday, March 10 Spring Break March 13-17 Cooperative Symposium (Mandatory for MAB students) March 30-31 Last day for Q Drop April 18 Muster April 21 Last day to apply for May 2017 degrees May 2 Commencement May 12th at 9 a.m. Reed Arena