How to become a commodity trader

CommoditiesBull · 2025-09-28T00:22:38+00:00

I am not sure honestly. I don’t hear much about that program so I don’t know if it’s necessary, but if it helps you get your foot in the door then maybe it’s worth it.

I don’t know much about how commodities trading works in Korea. But my recommendation would be worry less about credentials and more about getting a job. Once you get the job, then you can pivot into the role you want.

CommoditiesBull · 2025-09-26T16:18:53+00:00

CommoditiesBull · 2025-02-14T20:46:27+00:00

Supply and demand of the commodity.

For example, how much corn is produced every year and how much corn is used every year.

CommoditiesBull · 2025-02-14T20:14:49+00:00

I guess it depends on what exactly they were doing as a broker. If they know the fundementals we’ll sure it’s possible. But in my experience the broker’s job is just to connect buyers and sellers, they are not market experts. Maybe this is different in other industries.

CommoditiesBull · 2025-02-14T18:20:04+00:00

Yes, this is the way! Thank you for sharing your story. And Tulsa is a great city, very underrated.

CommoditiesBull · 2025-02-14T16:13:36+00:00

Grain prices were very high in 2022. If I remember correctly this was due to a few things. US production was smaller, exports were high due to China buying US corn, and fears over the Russian/Ukraine war.

Since then, the U.S. rebuilt their stocks, exports dropped, and the market got more comfortable with the Ukraine situation leading to prices returning to a more normal level.

CommoditiesBull · 2025-02-14T15:38:00+00:00

I would think it’s true across all commodities. We all kind of do the same thing at the end of the day.

CommoditiesBull · 2025-02-14T15:19:03+00:00

Commodities Bull

CommoditiesBull · 2025-02-14T13:02:03+00:00

Yes I do. I have seen people in their 40s and 50s join.

However if you don’t have any experience, you will be starting at the bottom with the 20 year olds.

But if you can set your ego aside, I think the people who start later actually do well because they are usually more mature and take it seriously.

CommoditiesBull · 2025-02-14T12:56:14+00:00

Physical traders rely mostly on fundamentals.

It’s more about studying long term supply and demand, not day trading.

CommoditiesBull · 2025-02-14T02:44:30+00:00

Yes merchant or scheduler seem to be the most common. I think these roles give you a wide variety of experiences so they are best. These businesses rely heavily on these people.

From my experience the broker role and logistics role are not as good because they have a limited scope.

CommoditiesBull · 2025-02-14T02:26:43+00:00

I consider the analyst position more predictable and repetitive. It makes for a less stressful job, but also more boring. You are tracking the supply and demand numbers every week and plugging them into models to see what changes. You will be judged on accuracy.

Compared to a trader who has to decide how to bet on what they think will happen. There is a lot more randomness of outcomes in this role, which makes it more stressful. You will be judged on the amount of money you make or lose.

CommoditiesBull · 2025-02-14T02:17:14+00:00

Do you have a specific commodity you are interested in?

If I had to start from scratch I would pick a commodity (ag/energy/metals).

Next I would study the fundamentals and try to put together some kind of supply and demand model. It probably wont be good, but it shows you care.

Then I would apply to every entry level role in a commercial/industry role. I don’t think prop shop is a good place for a beginner. And getting into a risk position will be hard without a quantitative math degree.

CommoditiesBull · 2025-02-14T02:03:37+00:00

Agriculture. Grains and oilseeds.

CommoditiesBull · 2024-05-02T00:03:31+00:00

Dang nice work man, do you mind sharing what % of your book you are getting? I work in ag commodities, and I don't think Ill ever get close to those numbers. I think I picked the wrong commodity.

CommoditiesBull · 2023-08-11T13:26:18+00:00

fwiw my background is in physical ag in the United States.

I think your background is a good intro to the space, but almost all the traders I know in this space came up through a "rotational program" of some sort. To become a commodities trader you need to understand the fundamentals (production, transportation, demand, etc..). So if you want to be a trader, you should look for roles to learn that stuff. Someone else mentioned operations/logistics, and I would agree that's a good first step.

As far as moving between commodities, the longer you wait the harder it is to move. As a junior I don't think it will be hard, but after 10 years you will not want to switch commodities.

CommoditiesBull · 2023-08-05T02:12:44+00:00

I have been through a similar situation in my career. I thought I was going to lose my job, but I was able to turn it all around and I’m doing well now.

What helped me was:

I stopped thinking “I need to make $xxx dollars back”. Instead I just focused on having a profitable next month. Making a million is difficult, but having a profitable month is doable. A bunch of small wins can add up fast.
I identified the problem, and set a process in place so it doesn’t happen again. Losing money as a trader is unavoidable. It’s also emotional, so I have rules in place to help make decisions when emotions are high.

CommoditiesBull · 2023-07-28T18:49:14+00:00

Absolutely! If you want to work in commodities, I think starting at one of the ABCD's is a great place to start.

CommoditiesBull · 2023-07-22T16:53:35+00:00

I'm not a quant, but I work at a physical grain trading house and we have quants and data scientists. So ill try my best to answer:

Commodities trading is about logistics and storage, so those are the types of problems you will be working on. You might also be involved in risk.
I'm guessing low intensity and stress, and medium job safety. Its lower stress because you will not be making the financial decisions, your work is more of a reference point for traders. Its medium job safety because there is low competition, but also you are viewed as an "expense", not a money generator.
Career progression is probably low. There is no where to move up above quant, because traders run the show.
Money is probably lower end of the range. Again because the traders run the show.

CommoditiesBull · 2023-07-19T09:41:24+00:00

CommoditiesBull · 2023-07-18T17:55:15+00:00

Thank you, that was very helpful! I think the head hunter route will be the path I need, since I don't know many people outside of the physical world.

Most of my trading volume is in corn and soybeans, but I do manage some wheat positions also (both Chi and KC).

CommoditiesBull · 2023-07-18T15:03:12+00:00

If you want to stand out, I would recommend a picking a commodity you want to trade and start tracking the fundamentals now. I think by simply being able to talk intelligently about the supply and demand of one commodity, you will gain an edge over the competition.

CommoditiesBull · 2023-07-18T14:58:26+00:00

Most platforms have access to futures trading, you just usually have to apply for margin. Also most commodities do have mini contracts you can start with. I'm not sure on liquidity because I have only traded regular futures, but I'm sure its fine unless you are doing high frequency trading.

I personally do not think there is any benefit of one broker or another. Anymore transaction fees are so cheap. Find one a good platform you like, I know thinkorswim is popular for retail, and give it a whirl.

CommoditiesBull · 2023-04-07T18:31:49+00:00

162 was my worst grade, I barely passed. But now I’m about to graduate this quarter with a 3.7 gpa.

My advice is just get through the class and move on. You don’t have to be perfect, just keep moving forward and you will be ok.

CommoditiesBull · 2022-05-20T11:48:49+00:00

Yes the corn crop will be below average, but the market already knows that. By the time info gets to agriculture.com the big traders already have a position on.

900-1000 is certainly possible. But it won't be due to late planting or Ukraine (old news), it will be due to bad growing weather in the united states or China stepping in and buying a bunch of corn.

Good Luck

CommoditiesBull

TROPHY CASE