Take a look at these articles:
https://www.bloomberg.com/view/articles/2017-07-1… https://seekingalpha.com/article/4087527-commodit… http://www.theaustralian.com.au/business/wall-str…
I love what commodity trading is about and am considering applying to all the trading graduate programs when i get the chance...but these articles paint a bleak picture.
Then again, commodities are the lifeblood of economies, and i find it hard to believe that they won't be needed. Plus, the industry is secretive afaik, and that makes me question the validity of these articles.
Can anyone shed a light on their opinions of the commodity trading industry?
It depends on what type of commodity trading you're considering to get into. Physical trading will be here to stay, it is like any B2B business with departments like shipping/logistics, finance/credit, operations/inventory, trading/sales. This type of business will always need people to run, unless blockchain technology has advanced to a stage where it can autonomoize human interaction and processes such as shipping and finance. In saying this, if advancement ever reaches there then you will see a lot of industries affected, and not just trading.
Those articles which you've shared (not able to read the Australian without a subscription btw) all relate to paper trading. I can't speak for all commodities, however, for the markets I deal in I can say for sure paper trading isn't much sought after. Low liquidity, and low volatility do play a big factor for derivatives especially if you're relying purely on price movements and being able to execute long/short strategies quickly. I can't say that I'm surprised if the article suggests many have closed shop.
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