Trading Position at Oil Major or Agricultural Commodity Trading Firm
I'm a finance and economics major at a non-target university, and I have a S&T offer with an oil major and another offer with a big agricultural commodities trading firm (ABCD). If I wanted to extend this internship into a career in S&T, which position would benefit me in the longer run?
Both internship offers? Idk man, you've got good choices ahead of you. Either one can lead to a successful career. You kinda need to do some soul searching and think about what you want from a lifestyle.
Ags:
Jobs located in the Midwest for the most part: ADM in Decatur, IL, Bunge in Saint Louis, Cargill in Minneapolis, and Dreyfus in Kansas City
Typically work less hours than energy but comp is also usually less
Energy:
How do you feel about Houston, TX?
Longer hours but usually better comp
Fwiw, I just got an energy trading position after 3 years into Ag merchandising. It was a deliberate pivot on my part. But I had several reasons, not all market related, for doing this. It's really up to you. I can try and answer any specific questions you might have.
Yeah, both internship offers. Thanks for the information. The comp is considerably better in energy, but it is with a more historically conservative player in the trading setting. I am curious as to how long the path to a junior trading position is in ag as opposed to energy.
You can get a merchandising position right out of college in Ag if you're willing to go to the middle of nowhere for a couple years. It will suck but it's a great way to learn the industry. You'll be buying bushels from Farmers either off of storage at your elevator of off the farm. You'll learn markets, carry, how to maximize your return on storage, farmer selling patterns, the seasonality of the industry, hedging, spreads, and you'll probably get a chance to do some cash market arbitrage of a few truck loads here and there. But you'll be in the middle of nowhere. My first post as a merchandiser fresh out of college was at a small concrete elevator built in the 1940s in North Central KS. Town had maybe 500 people and was the largest in the county. I was there for a few months. It sucked but I had a contract pad and could make trades, even ran my own hedges.
My understanding of energy is that you usually spend years in back or middle office as a research analyst, settlements specialist, or scheduling before you might get a shot at trading 5 years or more into your career.
As for comp, usually energy is better but Ag isn't bad. You'd probably start in Mid-50k plus bonus in an area with a super cheap cost of living. And I know traders at the ABCDs that have pulled in 7 figure bonuses in good years.
Was in a similar situation plus an IB offer. Went ag cuz the name was better and ag seems more interesting to me comparatively tho comp is still something I'm worried about.
take the oil major... thats a simple yes
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