Immense Commodity Trading Profits

What do the top ten commodities trading firms have in common? To start off, half of the firms listed as the top ten (2010 survey) are headquartered in Switzerland. An excerpt from Commodities – Switzerland’s Most Dangerous Business says


“Because of tax privileges, a strong financial industry and weak political regulation [Switzerland] continues to attract trading and mining corporations as a dunghill attracts flies.”

The top firms have a diverse business, while some specialize in oil and gas, others are focused on grains and food, and some on metals. Whatever their main area of expertise the large majority of their revenues come from physical trading and delivery. Below is the list of the top ten producing firm in 2010.

  • Vitol Switzerland
  • Glencore Switzerland
  • Cargill U.S.A. (MN)
  • Koch Industries U.S.A. (KS)
  • Trafigura Switzerland
  • Gunvor Switzerland
  • Archer Daniels Midland Co U.S.A. (IL)
  • Noble Hong Kong
  • Mercuria Switzerland
  • Bunge U.S.A. (NY)

What is particularly interesting about these firms is how lean they are run, which of course means a bigger share of profits to go around for the employees. For example Vitol and Glencore only have a staff of 2,700 people each, but their revenues were $195bn and 145bn respectively.

The Glencore IPO last year made many of its employees multi-millionaires including the top executives passing the highly coveted billion mark (Company President Ivan Glasenberg is rumored to have a worth of approximately 10 billion thanks to Glencore).

The Commodity and Energy trading industry will always be around as everyone in the world needs both to survive. Recently potential laws that have been proposed in the United States to curb certain types of commodity trading, primarily speculation etc. (although “speculation” in itself is a very gray area), but it is hard to imagine how they will come to fruition and how effective they will be.

 

Does anyone have any insight into these companies?

-Summit Energy -Equus Energy -ICAP -Fellon-McCord

They are all located in Louisville and I've scanned their websites but does anyone have any personal insights from either working for or interacting with these companies in S&T? If so any info on interview material, culture, and quality of company is appreciated.

 
Texsun:
Does anyone have any insight into these companies?

-Summit Energy -Equus Energy -ICAP -Fellon-McCord

They are all located in Louisville and I've scanned their websites but does anyone have any personal insights from either working for or interacting with these companies in S&T? If so any info on interview material, culture, and quality of company is appreciated.

two are brokers and other two are not worth the time

 
monty09:
Texsun:
Does anyone have any insight into these companies?

-Summit Energy -Equus Energy -ICAP -Fellon-McCord

They are all located in Louisville and I've scanned their websites but does anyone have any personal insights from either working for or interacting with these companies in S&T? If so any info on interview material, culture, and quality of company is appreciated.

two are brokers and other two are not worth the time

Monty - Which two are more credible? ICAP and Equus? Any insight into their hiring practices and what they put emphasis on when making the hiring decisions? I currently work as a mortgage banker across the street from both of theses companies in Louisville and am looking for my best way to approach them and what to expect.

 

Swiss secrecy. You'd be surprised how many physical shops are based around the Zug train station.

[quote]The HBS guys have MAD SWAGGER. They frequently wear their class jackets to boston bars, strutting and acting like they own the joint. They just ooze success, confidence, swagger, basically attributes of alpha males.[/quote]
 

I've been interested in this world for a while. Anyone got any links/info about what working at one of these firms is like? Day in the life of, different roles and functions, career paths, etc. I'm assuming the highest paid workers at these firms are traders, but is it more about trading derivatives (futures, forwards, etc.) or arranging physical delivery of commodities (import/export). Maybe both?

Also, any input on career switching into one of these firms? I'm currently an associate at a London boutique TMT M&A bank. While the work I do is completely unrelated, at least I have some finance experience.

 
Best Response
laser:
I've been interested in this world for a while. Anyone got any links/info about what working at one of these firms is like? Day in the life of, different roles and functions, career paths, etc. I'm assuming the highest paid workers at these firms are traders, but is it more about trading derivatives (futures, forwards, etc.) or arranging physical delivery of commodities (import/export). Maybe both?

Also, any input on career switching into one of these firms? I'm currently an associate at a London boutique TMT M&A bank. While the work I do is completely unrelated, at least I have some finance experience.

Ill try to see if I can answer your first question, as I am curious as well, let me dig around a bit.

 
Yuriy A:
shorttheworld:
who r u new guy writing about stuff

MUST BE A TROLLLLLLLLLL

im the king of new york

He is no troll...but you already knew that.
If I had asked people what they wanted, they would have said faster horses - Henry Ford
 

They sure do pay well for summer internships even though you're involved in ops and traffic mainly, barely any exposure to the actual traders/markets.

[quote]The HBS guys have MAD SWAGGER. They frequently wear their class jackets to boston bars, strutting and acting like they own the joint. They just ooze success, confidence, swagger, basically attributes of alpha males.[/quote]
 

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