Green Plains
Thoughts on Green Plains, specifically ethanol marketing/trading? I'm struggling to understand how well known it is in the industry. How does it compare to the larger Ag players/ABCD and would a sophomore internship here position one well to jump to a larger physical trading shop later?
Based on the most helpful WSO content, Green Plains isn't directly mentioned in the context provided, but here's a general take on the situation:
Industry Reputation: While Green Plains isn't explicitly ranked against the larger ABCD players in the context, it's important to note that the ABCD firms (Archer Daniels Midland, Bunge, Cargill, and Louis Dreyfus) are considered industry giants with significant global presence and resources. They are well-known for their structured training programs and internal growth opportunities.
Ethanol Marketing/Trading: Ethanol is a niche within the agricultural commodities market. While it may not have the same breadth as some of the more diversified commodities handled by the ABCD firms, it is a specialized field that can offer deep insights into the energy and agricultural markets.
Sophomore Internship Value: An internship at Green Plains could provide valuable experience in the commodities trading space, particularly if you're getting hands-on experience with ethanol marketing and trading. It's a unique product with its own market dynamics, which could be beneficial in understanding the intersection of agriculture and energy markets.
Transitioning to Larger Firms: Having a solid internship experience, even with a smaller or more specialized firm like Green Plains, can be a stepping stone to larger physical trading shops. It's about the skills and knowledge you acquire. Demonstrating success in a trading environment, understanding market dynamics, and showing the ability to learn and adapt can make you an attractive candidate to larger firms.
Remember, it's not just the name of the company but what you do there that counts. If you excel in your role, make the most of networking opportunities, and can articulate your experiences well, you could position yourself for a transition to a larger firm in the future.
Sources: Best Agricultural Trading Firm (ABCD), Q&A: I'm an Agricultural Commodities Trader, Q&A: Physical Oil Trading, Q&A: Gas Scheduler to Gas Trader, https://www.wallstreetoasis.com/forum/trading/picking-the-right-ag-trading-role-early-career?customgpt=1
I think it is a brand that is known across the industry, more "cache" vs your local coop, I dont think you will learn as much as you would working for a larger regional coop, and it is not a place that I would make a career out of, but as an internship I believe it is a good stepping stone to get a spot at a junior internship at an ABCD as there is a strong pipeline of the good prospects leaving the GPRE and going to an ABCD. I think it is a good name to have on a resume if your goal is to end up trading ag. I hate putting companies in tiers because it just causes arguments and everyone has their own opinions but I would put it in a tier 3.
Tier 1 ABCD
Tier 1.5 Cofco
Tier 2 CHS, Andersons, Scoular, Zen-noh, Poet,
Tier 3: GPRE, regional coops (NEW/Landus/Heartland, etc) , Viserion, CGB
Do you think it's feasible to leverage GPRE to transition into energy trading at an oil major? i.e. would biofuels experience be looked on more favorourably than grain merchandising at Cargill et al. If I want to be in power/energy eventually?
Only if you are touching the ethanol trading, if you are on the other side of things like origination or selling DDG's/wet distillers or building a cross country book, then the lack of a brand and structured training like Cargill has would put you at a disadvantage
do you think cofco will surpass Tier 1 (individually/combined) within next decade?
No, if a company like Cargill is the Hydra, then COFCO is a cyclops, 1 head, 1 eye and that's just grain trading to China. The reason why the ABCD's are as big as they are is not because of just pure export grain trading, they also have their tentacles in all types of downstream agriculture businesses that COFCO does not have. Cargill for example has a massive animal nutrition business of feedmills and packaged feeds, they have crush plants that produce biodiesel and refined oil, they blend oils for fast food, they own palm plantations in SE Asia, they turn their soybean byproducts into food ingredients like Vitamin E supplements, and the biggest margin maker of them all is their meat business. This is still just a fraction of all the businesses that they touch and if COFCO wants to move into the downstream business of food, it will take them way more than 10 years to get into that business. Even an LDC which has the smallest crush and G&O footprint still dominates other businesses that the other ABC's dont touch like Juice, Rice, Coffee, and Cotton.
GPRE has a bit of an asshole culture imo. Guys 2 years out of UN-L thinking they are Marc Rich for some reason. Would prioritize ABCDs if all things equal as many have said. Also Omaha blows
Turns out my reading comprehension sucks. As an internship I don't think its bad at all - I am sure there are some bars in Omaha that will accept a fake ID. Should be able to recruit hard for ABCDs in the fall with that I think. You will compete in the fall with kids who have 0 industry exposure, so you should stand out nicely.
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