Commodity Challenge Commodity Challenge

A “Real-Time” Online Marketing Simulation A “Real-Time” Online Marketing Simulation GameGame

www.commoditychallenge.comwww.commoditychallenge.com

Chris LabbeChris LabbeMontana MarketManagerMontana MarketManager

Montana MarketManager Montana MarketManager Commodity Challenge is a project of Commodity Challenge is a project of Montana MarketManager. Montana Montana MarketManager. Montana MarketManager is a joint program of the MarketManager is a joint program of the Montana Grain Growers Association and and Montana Stockgrowers AssociationMontana Stockgrowers Association..

We do that with….We do that with….

www.montanamarketmanager.orgwww.montanamarketmanager.org,,marketing clubs, and seminars!marketing clubs, and seminars!

Commodity ChallengeCommodity Challenge The goal of Commodity Challenge is to give The goal of Commodity Challenge is to give

farmers and ranchers an opportunity to build farmers and ranchers an opportunity to build their marketing skills in a risk-free simulated their marketing skills in a risk-free simulated environment.environment.

Participants trade commodities on the futures, Participants trade commodities on the futures, options, and cash marketsoptions, and cash markets

Lock in prices, manage risk, and execute their Lock in prices, manage risk, and execute their marketing plansmarketing plans

A “Real Time” simulated trading environment. Just A “Real Time” simulated trading environment. Just as in real life, participants pay commissions on their as in real life, participants pay commissions on their trades, pay fees for their stored crops, and sell on trades, pay fees for their stored crops, and sell on their actual local cash market prices.their actual local cash market prices.

Currently over 2000 cash locations exist.Currently over 2000 cash locations exist.

Commodity ChallengeCommodity Challenge

Commodity Challenge Version 1.0 Commodity Challenge Version 1.0 • First launched in February of 2002 First launched in February of 2002 • Created a “Real Time” trading simulation just Created a “Real Time” trading simulation just

for Montana Producers.for Montana Producers.• Funding for the development of Commodity Funding for the development of Commodity

Challenge was provided in part by the Challenge was provided in part by the Western Center for Risk Management Western Center for Risk Management Education.Education.

Commodity ChallengeCommodity Challenge Commodity Challenge 2.0 Commodity Challenge 2.0

• Released Fall of 2002Released Fall of 2002• Opened up to all U.S. Producers.Opened up to all U.S. Producers.• Offered expanded trading options like…Offered expanded trading options like…

Ability to make trades that can be filled instantlyAbility to make trades that can be filled instantly Interactive charting software to track basisInteractive charting software to track basis Cash prices in thousands of locations across the Cash prices in thousands of locations across the

countrycountry Live news feed to monitor the moving events.Live news feed to monitor the moving events. On-line marketing resource library to answer your On-line marketing resource library to answer your

marketing questions!marketing questions!

Commodity ChallengeCommodity Challenge

Commodity Challenge 3.0Commodity Challenge 3.0• Released Fall 2004Released Fall 2004• Added the Soft White Wheat Commodity Added the Soft White Wheat Commodity

for OR, WA & ID Producers.for OR, WA & ID Producers.• Over 2000 users actively participating!Over 2000 users actively participating!• 51 Games created across the U.S.51 Games created across the U.S.

Commodity ChallengeCommodity Challenge

Commodity Challenge 4.0Commodity Challenge 4.0• Launched Fall 2004Launched Fall 2004• Expanded cash locations for Soft White Expanded cash locations for Soft White

Wheat in WA and OR.Wheat in WA and OR.• Marketing Plan InterfaceMarketing Plan Interface

Official Launch in mid April or MayOfficial Launch in mid April or May Marketing Plan Creator – A step-by-step tool Marketing Plan Creator – A step-by-step tool

to create a marketing plan and “trigger” to create a marketing plan and “trigger” questions to help them implement it. questions to help them implement it.

Commodity ChallengeCommodity Challenge Commodity Challenge 4.0 cont.Commodity Challenge 4.0 cont.

• Trigger questions:Trigger questions: What price to sell or buy at?What price to sell or buy at? How much to sell or buy?How much to sell or buy? What marketing tool to use ? (cash, futures What marketing tool to use ? (cash, futures

or options)or options)• Marketing Plan Implementer Marketing Plan Implementer

Is a mechanism to implement producers’ Is a mechanism to implement producers’ marketing plans which will either “execute” marketing plans which will either “execute” trades or “notify” them when trades should trades or “notify” them when trades should be made.be made.

www.commoditychallenge.comwww.commoditychallenge.com

www.marketmaxx.netwww.marketmaxx.net

www.canolachallenge.cawww.canolachallenge.ca

Commodity ChallengeCommodity Challenge

Play as a marketing clubPlay as a marketing club Play as an individualPlay as an individual Or play as a classOr play as a class

Games are free and open to anyone!Games are free and open to anyone!• Please give me a call to setup a game or Please give me a call to setup a game or

join one today for free!join one today for free!

Commodity ChallengeCommodity Challenge

Sponsors for Commodity Challenge!Sponsors for Commodity Challenge!• Montana Grain Growers AssociationMontana Grain Growers Association• Montana State UniversityMontana State University• Western Center for Risk Management Western Center for Risk Management

EducationEducation

• Questions?Questions?

Commodity ChallengeCommodity Challenge

Montana MarketManagerMontana MarketManager

Chris LabbeChris Labbe

(406)761-4596(406)761-4596

Or Or

chris@montanamarketmanager.orgchris@montanamarketmanager.org