How Commercial Traders Exploit Cash Commodities - 2020

never as our society consumed so many raw materials as here at the beginning of the 20th century the emergence of new economic powers like China and India has set off an explosion in demand this scramble for commodities has sent prices through the roof to the point where in 2008 hunger riots broke out in developing countries [Music] but China's insatiable appetite is not enough to explain the soaring prices clearly some of the responsibilities must fall on the markets themselves we can't afford a situation where speculators artificially manipulate markets by buying up oil creating the perception of a shortage and driving prices higher [Applause] but these speculators Barack Obama's talking about who exactly are they how do these famously complex and opaque commodities markets actually work to answer these two questions you have to speak to the leading players in these markets the commodities traders who buy and ship the merchandise then resell it [Music] they're all members of an old corporation the world of big business the very first rule of this corporation is secrecy and secrecy tends to feed people's imagination a trader is a company or an individual who buys merchandise in order to sell it online at a higher price you merged it some it's you it's a job where you hate risk but I works entirely based on taking those risks on the parlor we're not there to rob people that are on whether to take risks and this you're now if we get it right make money can you love we are merchants we make we are market makers [Music] [Music] the commodities traders have made Geneva the hub of their activities it has the banks and the tax breaks so no less than 400 trading companies have based themselves there among them some of the Giants of the sector vital is the world's leading oil trader with a turnover of 300 billion dollars and then that's the club of four big agribusiness companies who between them can lay claim to 80% of the world's grain market they call them ABCD tucked away in the discrete Canton of zhuge the Glencore group is as powerful as it is secretive with a turnover of over 250 billion dollars it's a player on all the commodities markets but how much do we really know about these business Giants almost nothing here on the shores of Lake Lima the commodities traders cultivate anonymity and a notoriously camera-shy the multinationals stick to their basic rule and won't talk to us in a year-long exchange of emails the Glencore group will demonstrate its perfect mastery of the art of never saying no the only company that will through the voice of its managing director explain its choice to remain silent is louis-dreyfus commodities in the past we have too often noticed a tendency on the part of certain people to reduce the debate to a conflict between rich and poor multinationals and small local farmers technology and purity etc I hope you'll be contributing to enriching the debate to take it beyond the usual moralizing themes as helpful as they may be best regards meanwhile though other businessman accepted to meet with us such as she'll shut our until recently an oil trader for one of the world's biggest oil trading companies when they are political show me a top university graduate a mining engineer mathematics philosophy graduate engineer and I'll show you one of the world's worst oil traders a trader will tell you well this is the playing field just go for it let your experience your intelligence and your nose for risk be your guide and sometimes we screw up good and proper development yeah Paul don't you need it to give you an idea on a hundred million-dollar cargo you're trying to make 100 million and if things are really volatile you make a mistake you're going to lose three million dollars climbing yonder so you're risking three million dollars to make a hundred million Lela and that's a really tough business and only the best surviving nearly me you're shot either according to the traders mark rich was the best it was he who back in the 70s revolutionized the oil business a mythic figure in whom all the ambiguities of the profession were incarnated budget Hawaii tones associate yes I worked in his company I thought he was an extraordinary guy and I Monsieur none of them could speak five languages they could absorb information and remember people and define us all my shoulders in the most extraordinary way so and these are formats young the many are he had an instinct for risk and a talent for networking given sauce the Kentucky racketeer he was our guru really not motto artists lucky everyone who met him or tell you Margaret was a great businessman or she but on the human level while that was another story to this day the name mark rich is associated with a scandal that took place in the 70s in 1978 the mullahs seizing power in Iran LED first to Iranian crude oil supplies being cut off and then to an American embargo both economically and politically it was devastating I thought did mark rich made his fortune in the 70s by setting up trade between the chars Iran and Israel it Ozma then he held on to his positions in the ayatollahs and run and kept trading in Iranian oil right through the Tehran hostage crisis laughs at the American a Mossad did it doesn't yet do mark rich now found himself on the FBI's ten most wanted list and had to seek asylum in Switzerland until the day he died in the summer of 2013 he would never again set foot in the United States mmm Clinton even gave mark rich an official pardon but he never came back to the United States Jacob mawkish at 2:08 tea I'd say mark rich always lived on the edge ethically it's true ethically well no he has no ethics a and he was even on the edge of what was legal and what was little just how far can you go in business between Marc Rich and Glencore lies a very shadowy commercial zone but let's get back to basics traders are first and foremost merchants and they've been around for centuries when the Amsterdam Stock Exchange first opens its doors in 1611 in a public square business was booming prices quantities quality delivery dates all the arts of negotiation were in play [Applause] 400 years later the rituals are still in place in London for example we're in the tradition of a glorious past metal prices are called out each day at auction it's a coded world for the initiates [Applause] as ever if you want a trade you still have to know your product on the dockside Adler of the cargoes of coffee keep coming in it's the most widely traded commodity in the world in this historic square fridge with the history of coffee trading there are still some big traders like Patrick masa thirty years on the job he took over and saved the Jobin company founded in 1871 these days he works for the world leader the German Norman Kaffee group it takes him 10 minutes by bike to get to the office and to the worldwide coffee market here at 299 that's pretty much the best in Brazil right must assume you lose even makhno I can send you a sample I think I've got some in Morocco absolutely look at em bar AMS it's not rubbish nah awkward it's the real McCoy polymers are not Mickey Mouse probably to makea on Sookie what we do is buy coffee and sell it according to customer demand boon or nerd are two main risk areas of first Geographic which means you have to know your suppliers who is selling the coffee at Sochi in Crete then there's the price risk because the prices can vary greatly you know me more so that means if you've already been selling coffee to someone at let's say 100 or so and the markets gone up to 300 well you have to honor your agreement and that's the security we offer our client to you a little bit old don't know what it is but it's a bit old hopple secure they want to sell us these coffees but there's no way we're going to buy them risky because they don't go far it's just not the quality we should expect from these coffees it's really not what we're used to they could only go between well that's really no good it's rancid what we're really all about is the product we know about coffee we know how to promote it or how to describe it we do our best to advise our customers on quality blends etc it's a product that counts London along with New York is one of the two main centers of the coffee trade that's why there are so many traders in the British capital tarek Erica cinder used to work for one of the biggest coffee trading companies until he launched his own business he's passionate about the product and about the market as well it's fantastic Fe the markets move it's it's really interesting it's one of the most volatile commodities in the world it's fascinating one year you have a huge crop the next you have a very small crop compensated by a massive crop in that country over or a smaller crop in that country and all these numbers just are really interesting to play with I travelled quite a bit I travelled once a month at least to producing country see my clients talk to them try to do some business see how it's going look at the crops how they're developing you know I've been doing it for the past 25 years so above all commodities traders are Globetrotters business isn't just done over the phone or by computer our more as as there is on a business trip to Taiwan he started out in sugar and dabbled in cocoa until he settled on coffee and founded his company Mambo commodities he's off to meet the big cotton spinners in the south of the island to sell them [Music] he's accompanied by Apollo Chang his local agent and Masood mama is associate in Togo concentrate isn't forever looking at cotton it's hard to imagine doing this without touching it seeing what I don't know if one wants to what prevents you seeing it as often as you'd like is all the office work involved but you're still ticking all the boxes in your head this cotton is like basic comes from there we're always being sent samples and checking them out in the sorting room becomes second home vehicle and that's how we keep the spinner satisfied as supplied him with the costume a1 from year to year old spinning is the starting point in the worldwide textile industry the cotton is transformed into spools of thread to supply the clothing factories in Cambodia Laos Bangladesh and Ethiopia the ER company is one of the biggest spinners in Taiwan thousands of tons of cotton are bought every year by mr. Tai who only does business with the biggest traders and is famously tough to deal with today somebody called me 79.5 for the one yeah it depends 441 or 31 you mean for you Marcel about you were 31 Italy so literally milling Yamini it will be difficult for me to provide at this time of the year I'm not the only one not looking for it and there is a big big premium to pay to have it we have some strict laws and even on strike low this is really the best you can find yeah we should beat immediately we have it yes yes yes but we have to agree on the quality if you want you have the samples here we agree we send you some sealed sample and it will be exactly what you are going to receive we don't fail my java I made him a firmaface just has to snap his fingers and it's confirmed there's nothing on paper but it's a firm offer that's how it is no need to have it on paper publish I fee is its little Berbers good and it's very misleading because he can all seem to happen so casually and then the deals done just like they are so underscored in a couple of seconds the deal will be made and there'll be millions of dollars because 82 that's 82 cents per pound of English cotton North which makes about 1800 dollars a ton eighteen hundred dollars times 500 tons so we're already at a million dollars just for what we were talking about this morning for a few minutes so there's no room for mistakes about the terms or about what you're promising because if you get the terms wrong there's no going back on them kid it's just like in the school playground what cell is sandy [Music] millions of dollars just on somebody's word that's how they do business in the cotton trade but selling is only part of the job you have to know and to buy being a trader means above all being prepared [Music] to be prepared commodities traders have to analyze and interpret information from all over the world [Music] Jack Cain is a rice trader he works from Geneva where he runs the Novell commodities company asalaam do group or the departure of the major groups have researched the publicís line keep a constant eye on supply and demand overhaul TCP so they can anticipate the relationship between the two he led the month in the short medium and long term little pill suppose Kusadasi I think that's how decisions are reached but to know then the results will turn out to be either right or wrong before he did tell me before if I'm depending on the positions that are taken they'll determine the profit or the loss made on the transactions and that's what's known as feeling the market just for a Bissel yes it certainly isn't an exact science but that is indeed what we call feeling the market full perk is a Dutchman living in Brazil he's an old hand at international agricultural commodities trading and he's learned to check his sources therefore Monsieur tickly information is the key based on it because if one of your colleagues gives you some wrong information from China Suresh she and sit there telling you for example that China has enough corn this year to feed all its pigs and chickens because he's been out to look at the harvest he reckons everything's ok but then it turns out it's not okay at all and China suddenly turns up on the market and imports 10 million tons then that's for sure going to completely change the prices see you're good and what happens if you haven't seen it coming you lose a lot of money in general agricultural commodities such as wheat represent a considerable gamble the traders follow the harvests very carefully and can quickly check out whether their information is accurate to be ahead of the game though you need the right contacts and a good network [Music] in 2010 Russia suffered a terrible drought and the wheat harvest was looking like a disaster to prioritize the needs of the Russian population the Kremlin decided to stop all exports within two days the international market price of the grain had risen by 15 percent the Glencore group have found all its connections revealed on the front pages of the financial press right from the start it's really been a very controversial firm and it's often been in the news notably in 2010 when it admitted speculating upward the price of corn and wheat and this at the time Russia was having a drought you're mental and at the same time they publicly demanded that Russia ban all grain exports thought that Sean Lucy here no she said Russia didn't waste any time complying so within a few days world food prices took a brutal rise of 30% and that way Glencore made a considerable profit other fare a Porsche courtier sin effective more then God sure if glencoe heard on the grapevine from its link with certain not only guys who were close to Putin Putin if they knew for sure there'd be an embargo well that's when you take positions you're Sid doula for its information it's pretty close to insider trading me but it's the worldwide market where insider trading does happen suppose here well nobody sir and in quite a few countries let's not kid ourselves it does go on things are corrupt it associated Nagar and there are some trading companies that are more or less titled and others or some of them you've mentioned in CT who have no idea of ethical behavior but there's a lot more to trading than they a trader takes a chance when he buys raw materials even before their produce a year before the harvest the cotton has already been negotiated Armand desease air has for a long time been working with Burkina Faso today one of Africa's foremost producers of cotton the harvest season is starting and the producers are bringing in the crop we'll see it better at the factory they'll plane off all these bits available well see a Menezes airs business contact is Sophie tex a semi-public company that over season commercializes cotton production in the west of the country of 500,000 tons of cotton sea Armand Dez's air has already bought this cotton the year before it's been harvested he's not only bought it but has already sold it to Asian spinners I hope it'll be better than last year we could engineer and also see a Tunisian do useful Enzo will the promised quality be delivered it's the moment of truth oh yeah Molly said we come here to the sorting room to see Joelle and we say right so what are we really getting here we have to deliver to our clients and we have to know what will be giving so you have to match the specifications of what you're selling as closely as possible to what's being delivered its size you'd never be able to do that without the results you get from the sorting the pilot movie sees everything the moment the cotton is bailed up the traders try to move the merchandise as fast as they can to respect their deadlines it's all now a question of logistics and everyone's in the same boat the louis-dreyfus Cargill or Armand as I said they all sit there in the same chair opposite Paul Swabia who controls all shipments for Sophie Tex he's the man you have to negotiate with I can start loading but I don't know when they'll be leaving can you get it off by train then yes by train no problems I already started doing that last week if all goes well these balls of Burkina Faso cotton will in a few months be in the hands of the Asian spinners [Music] [Music] from purchase of the product until delivery the commodities traders need a lot of financing that's where the banks come in [Music] the Banco Jalisco a bank really hates risk trader likes a bit of a risk but it's something a banker just can't stand so he lets the oil try to take the risk while the bank finances in the bank run we live in Australia oil trading for instance has certain merits such as that you typically transact large tickets which makes it operationally very efficient if you look at a crude oil trader which which executes transactions with a typical tenor of 45 days that means that they can turn around eight times their credit line in a year so so and knowing that crude oil cargo is something between a hundred and twenty to two hundred fifty million dollars you can imagine what what amount of money's involved in that business you know I mean there are in the crude oil sector there are companies which which have turnovers between 100 million operates to two to three hundred million dollars a very big billion dollars yes well I don't use a lot of bankers today I use trade finance funds because the banks have had have been very erratic in their relationships when one is sunny they give an umbrella when it's raining they take it away and they tend to do that all the time then you don't like this you are risk averse thanks to thanks to but sometimes you know back in the in 2008 9 the shares collapsed and didn't have enough cash to to provide financing and and it was a drama it was horrified we were wondering how the world is function how the trade flows are being financed the bank's cut a lot of lines took a lot of people for you at the time yes at the time I had to liquidate my company yes yes was it the words that it drama yes yes was my life traders who love their product and their job have also for a long time had the reputation of being speculators the history of trading is also the history of speculating as far back as 1909 in his film a corner in wheat the American filmmaker DW Griffith tells of unscrupulous dealings of a speculator as he makes his fortune on the back of the suffering peasants less between a short fit party speculating is part of the job in a bottle it's important for a trader and in my case the commodity I'm dealing in you must rise you're lucky to be able to foresee the rise and fall in prices what they would have best slippery dorking sessions so you have to take a position and buy what you know you can sell at a profit - Vogel of a cup or sell only when you're going to make a rough circle and that means speculating do speak less true they call Anthony Ward chocolate finger he's considered to be the world's greatest trader in cocoa in 2010 he hit the headlines when he bought almost all the cocoa stocks on the Ivory Coast the world's biggest exporter just weeks later civil war broke out in Abidjan and cocoa prices went through the roof Anthony Ward had played a winning hand the wheel turns though and in November 2013 he had to sell his business it's perfectly obvious for the dominant players on the market there's always the temptation to hold back sales in the hope that the price will rise - tea to buy up as much as they can to force prices up and then sell it a big profit that's what trading is all about the big problem though is the lack of transparency you put a lot at discussion along with you there may be a certain discretion about the business perhaps companies don't share information about their infrastructures lost rules about how many silos or warehouses they've got there's no way there are any hidden stocks any alibaba's caves hidden away in deepest Amazonia that just doesn't happen stuff but an unprecedented revolution is set to shake up the world of trade and opening the door to an entirely different kind of speculation [Music] you have to go to Chicago to understand what's happened at the turn of the 21st century [Music] both traders and producers have always sought to keep one step ahead of price fluctuations to manage the risk they created the futures markets the most famous of them is the Chicago Board of Trade a legendary center of the agricultural commodities market [Music] there are other traders working here known as paper traders as opposed to traders on the physical market Trez Koopa is a paper trader I'm watching crude oil here I've got a big position and crude I'm also watching other markets and then I'm on Twitter and so I will monitor Twitter for me is a good source of news because people will talk about what's going on and it'll show up so I'll kind of keep an eye on that and then I'll make comments there's some people that are listening to my comment in the crude oil and I'll kind of tweet about it and say I think this or I think that you know just if anything else it's to watch and see what's going on at the Chicago Board of Trade paper traders like Trez clipper deal in futures in financial speak a future is a derivative product for the traders it's a form of insurance that covers them against price fluctuations actually if the futures markets exist is because the insurance companies refused to insure against price risk and for one very simple technical reason if you have a car you can insure it against theft or against fire because you know how much it's worth and the insurer too knows just how much a particular cars worth so he'll insure it at a rate that he's able to assess your condition he can fix the price in the amount with the raw materials though the margin for price rises or wrong to do especially Rises is infinitely so the risk isn't quantifiable and it's because the insurance companies couldn't cover that risk that the futures markets were creatively dosterone assured you good - when you buy a large quantity of cotton at any given moment in you know you're going to resell it in a month six months or in a year or two toothless throughout the length of this contract as long as you haven't sold it you're at risk from the price so there's a way of insuring this price risk the financial market knows so to cover himself against price fluctuations Armand Aziza is going to sell a future to trace creeper I saw log jeans at 128 in stock market language it's known as a position and when you're actually selling your physical product to the spinners yes you if you buy that position back on the stock market which sells it back to you you have relevant so Trez Koopa is a speculator by buying and selling futures he hopes to make a profit while enabling the traders to cover themselves against varying pricing good sit in many of the to talk it's the time-honored custom for the producers and the buyers of agricultural products to cover themselves against evolving prices and against the unpredictable risk that entails you need a source of sauceless the speculation this involves is basically healthy and it encourages and facilitates fair exchange but it's true that the arrival of big investment institutions investment funds and investment banks whose only motive in the way they approach the markets as a financial one has twisted the rules of the gap for silly danisha in the year 2000 the internet bubble had burst and IT stocks had collapsed and investors turned to the commodities market for new sources of profit the big banks and the pension funds like CalPERS which alone handles two hundred and eighty billion dollars started mass buying futures commodities prices soared or Julianna Sebastian well these days we just don't know what the big funds are up to who booked what to do why do they suddenly turn up on the market and invest billions in sugar for example oil or soya also public why for sir we can't know why they do it because they have such wide portfolios that they have to invest a certain percentages or a certain percentage in coffee or in sugar in gold in oil or in currencies don't know and with all the money they've got well it all comes in at once and the market just can't control the market [Music] loosest Adela get bail they say to the manager CalPERS if you don't bring in a 12 or 14 to 7 return on invest you're fine and the campus guy he's gonna raise the stakes and of course is just then the trader doesn't have a chance because he's dealing in physical commodities whereas the sheer volume of paper trading has become much more important [Music] you serve a failed each other traders who are employed by investors have a know-how that's very adaptable no matter you put that OSI but just as good on the stock market as on the metal or oil markets Casali Patong evil company Bianca and if you take a trader who's working in wheat for example Lamar said you believe it buy and you move him over into oil he'll be fine they sort of ushered you bit whole universe just because it's probably going to be the same tool sees you holy man particular gene and that's because he's not dealing or the fundamentals of the market he's using mathematical tools the latest development in his new virtual world of trading is the creation of computer BOTS programmed by algorithms and capable of taking both buying and selling positions at the least fluctuation of the market sometimes get what we call automatic orders as a result of this kind of trading that just turn up on the market out of the blue is buying or selling orders for thousands of shares and that obviously immediately causes quite a lot of frankly ill-considered movement we usually hear about it the next day when the experts from the Commission agencies inform us that automatic orders have come through from some computer policy that's how we find out it's for you know she once you've seen the shares is too late it's a done deal ghoulish they've either been sold or bought so most of the time there's nothing you can do about it you just have to live with it ultra BC [Music] irrational behavior is becoming a characteristic of the market high-frequency BOTS work by the millisecond and they can make colossal profits or in the space of minutes bring about huge crashes finances all claim they have nothing to do with steep price rises according to them speculation merely amplifies the high prices which in fact will always remain fundamentally linked to supply and demand of the physical product in 2008 though the crisis that hit the cotton market proved this claim to be untrue that year the harvest was good and the price is increased only slightly it was a windfall for the investment funds who saw great potential profits in it they bought up huge numbers of cotton contracts and in the space of a few months prices doubled actually you niggars say to the what the reaction from traders was first of all one of the Heineken one opinion it was real bad because it was just like as great big old farm junior city we were heading into a black hole we didn't know what to do fella called who'll be scrambling for money every day we couldn't sell anything and we didn't know how long it did go on was it true you were calling your banker every day saying I've got my future position my physical position you have to cover me so how much was at stake he come yet well for a company like ours it was several hundred thousand dollars every morning it sir see Casey more that's pretty much untenable katie's and so the banks were saying look we can't go with that liquidate your position you did up position for any traders who found themselves having to liquidate that position you go struck that meant a net losses sure and Beatrice ish you Bastia an avant de movie I think there was before 2008 and after 2008 for a company like ours and also for others that were a lot bigger which that wasn't enough value immense thinking again about investing in the futures market and it also meant rethinking what period of time we could leave ourselves at risk prices it's always good avionics on there you have a flagrant example of serious distortion or deregulation all the more so because it resulted in quite a few bankruptcies with big cotton trading companies being forced to close down idiomatic listed about a lot of traders just disappeared on a portal this was all directly linked to a kind of speculation that is totally out of line with the reality of the world economy that any to the community this speculative drift would in 2008 extend to other markets and affect basic foodstuffs in countries already weakened by a lack of agricultural policies and by corruption the food situation worsens riots broke out who killed your problem yeah the heart of the problem was the perverse system by which through the 80s and for 30 years now countries have become more and more dependent on imports to feed themselves and when a state owes its political stability to rice or bread prices that are relatively affordable for the whole population and has to import all its rice or wheat which is the case for many West African countries for example you can understand governments being a little jumpy about these situations in 2011 on the new york stock market oil prices reach new heights that threaten the fragile economic recovery barack obama put his foot down and named the guilty parties we can't afford a situation where speculators artificially manipulate markets by buying up oil creating the perception of a shortage and driving prices higher only to flip the oil for a quick profit we can't afford a situation where some speculators can reap millions while millions of American families get the short end of the stick see it's a cliche to say that we make oil more expensive the apps it's completely untrue still a still much we just try to buy it as cheap as possible and get the best price we can for any flows we try to optimize the income if you like we don't care if the absolute price is $100 apparently or $25 a barrel or $80 a barrel what matters to us is the volatility the movement of prices deeply so even as were beyond bet mr. Obama what bothers mr. Obama is that he has no control he's faced with five or six trading companies based in Switzerland that are totally private and who do business with whomever they want it kjelva this is a horrifying train the CFTC the American market Authority has regulatory measures for speculation intended to limit the interventions of pure finances at the Chicago Board of Trade regulatory measures are never very welcome for me 2008 was a really really good year it all depends on your position and so there's not a good market or a bad market it's it's how are you responding to the market itself not necessarily good or bad all that stuff is just a smokescreen all that stuff is oh there's an there's an evil market force out there that's hurting customers that's nonsense open the free market let free markets trade have the government and the regulator's stay out of it and then if somebody wants to not participate in the market if they think the market is somehow unfair to them then by all means find another market that they do think is fair but you start dictating you know who can and can't trade no way free markets for free men no thanks it's all about prices the traders on the physical markets used and refer to a fixed on the financial markets okay he wants very heavy almost they don't so these financial bubbles let's blow up and then burst a direct influence out in the field on the traders for the net importer countries of foodstuffs and even on the producers of these products sorry could you tell them to see necessary code and unfortunately there's a sort of smoke screen over the fact that the financial markets affect the prices of agricultural raw materials equal and I think that's a big process and very small for basically what with the market telling us imagine the markets were saying oh listen kids there are seven billion of you okay because in a few years it'll be ten billion and still you're not investing in agriculture well perhaps it's time to wake up all of living that's the message from our producers who follow the market carefully try to make a profit out of rising prices but the smaller of them are often helpless faced with the extreme volatility of prices natella producers have great trouble aligning themselves to price they find it difficult to change crop - in the United States it's easy enough to switch from growing soya to growing corn for example whose price is rising because of the demand for ethanol but for a lot of growers in the developing countries the crops they grow depend on soil gradients precipitation their own experience the availability of seeds they can't change crop just like that the price rises will benefits the intermediaries the traders and stockbrokers but not the small producers at the beginning of the tradition the big producers do well out of the explosion in demand and the rising prices in Brazil soya which is essential for feeding all livestock represents today a huge market in ten years its production is almost tripled the farmers have become real businessmen in the Rio Grande do Sul in the south of the country Pedro Luis hectar runs a medium-sized farm of over ten thousand acres he may continue to work with the traders but these days he has ways to cut them out nós temos you twin procure odds that's right we're in great demand I Chinese companies to directly export soya mais vous kilos but the distances involved just make it quite complicated to guarantee delivery and the quality of the merchandise on arrival if you gotta see my spec that Shiva deva siddha me it's true that when it comes to that the trade is a really good for our peace of mind iya Trajan's no matter i think the big companies could now deal directly with the Chinese but not the small or medium-sized businesses Juliet that means they won't have the means it'll just be too expensive for them busy us as no they do come further jealous in fact what the Chinese want is to get away from the Chicago stock market prices what they usually do is ask me to fix a price that's lower than the stock market price so that limits our possibilities what we're doing now is exporting directly per container this is new for us so we'll see how it goes assess this direct dealing between producer and importer is still suffering from numerous logistical problems at the moment the Brazilian Port of Santos where the Sawyer is loaded is overstretch but this kind of initiative looks like the economic model of the future the big producers are intending to become traders themselves and the traders produces a market trend that may well even further sideline the small farmers I rather believe that what you know we will be facing in the future stop producing companies upstream companies will create their own trading outfit in countries like Switzerland and in fact this is exactly what has happened and what we'll continue to have I think it's poor man's business today to be is a medium-sized trade house of small trade house it's very difficult you have to have very niche markets some of the we do the unwanted business that the big boys don't want to do the future belongs to the big conglomerates that represent the whole sector in Geneva ABCD have become producers industrialists and finances but he's after my gag you know it's hard Gil for example was the first of the four to set up an investment fund called black river asset management management whose job is to speculate on the financial commodities market both for the parent company and others so these companies are also selling financial services and speculating directly on the agricultural commodities financial market ABCD are very good at both jobs and their directors keep all communication to a minimum you know what they don't want people to know about them okay they have no interest in that all it would bring them would be critical why call publicity was a abyss you imagine cooler république I don't imagine for a minute that people would like to hear the they say a B C or D I'm making something like five billion dollars a year trading in bread or cooking oil or chicken or beef or beyond a birth these trading giants may look right now like masters of the universe but the history of trading is littered with seemingly invincible empires like there's that through their own arrogance have been swept away by an indifferent market [Applause] [Music] even so one thing won't change its the traders who keep on making the world go round it's very similar to the American the prices are very high 80 45 cents which is very high [Music] how many candies you looking for telling that in the meantime I gotta look for high grade school results from every humans so again I you have [Music] you

Channel: TradingCoachUK

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Keywords: Wall street, forex, stocks, commodities, gold, oil, trader, warren buffet, million dollar traders, traders by the millions, market, trading, analysis, stock, technical, investment, futures, options, finance, day, currency, markets, news, euro, financial, bloomberg, system, stock market, hedge fund, education, dow, business, new, documentary, cryptocurrency, bitcoin, trump, top 10, top 50, billionaire, trillionaire, rich list, life hack, secret, make money, mid term, 2020

Id: WaZUpVX3FAQ

Length: 52min 53sec (3173 seconds)

Published: Tue Oct 10 2017

Reddit Comments

[u/stateofyou]

WTF, first sentence has a glaring error. How did the writers, editor, narrator and producer not spot this?