Trading in Commodities

Almost 60 students filled the Lecture Theatre to hear a talk about ‘Trading in Commodities’ from Martin Perry. Martin covered a wide range of topics concerned with commodities, from the origins of trading in commodities to careers in commodities to price discovery (i.e. how commodities reach a market price which allows them to be traded). Martin discussed the four main categories of commodities trading:

• Energy Commodities (crude oil, natural gas, and gasoline)
• Metal Commodities (gold, silver, and platinum)
• Livestock and Meat Commodities (pork bellies, live cattle, and feeder cattle)
• Agricultural Commodities (corn, soybeans, wheat, rice, cocoa, coffee, cotton, and sugar)

He then focused on wheat and grain as an amplified example, involving some student participation where they were able to negotiate prices in order to attempt some virtual trading, reacting to a number of different and changing scenarios.

Martin has been trading goods including cereals, soybeans, sugar and cocoa, with his career taking him around the world, including roles based in Madrid, Chicago, New York and London; now working for Bartholomews Agri-Food in Chichester.

Martin concluded that the physical commodity industry is unique, varying enormously between different product categories, comprising many diverse career paths. He recommended it as an opportunity to experience foreign cultures and the potential for independent travel. Most importantly, he said, it’s a people industry which not only values reliable service and price, but good long-term working relationships between buyer and seller.

Huge thanks to Martin for visiting us.