How Commodity Traders and Commodity Trading Companies stay out of the public eye

The physical commodities world is very oligopolistic and self-sustaining in that, all Commodities Trading Companies sell the same products (commodities) and have no distinct business advantages such as the possession of patents or proprietary technology, and there are high barriers to entry. These commodity houses mainly sell commodities to each other, or offer to take on risk from commodity producers through the use of financial derivatives. This creates a closed-end supply chain from supermarkets to commodity houses to raw producers fostering a culture of privacy and secrecy, not only from competitors but also the general public.



As physical commodity traders depend on superior trading/pricing information gleaned from proprietary IT trading platforms they get an added advantage if they are able to control critical assets through sourcing or origination requiring agile, entrepreneurial traders and trading teams to make secretive dealings with commodities producers.

Many of the big commodity houses (especially in agricultural commodities) also collectively lobby and support one another to ensure that their business thrives in the face of impending regulations and bills. They often make up the key constituents or backers of powerful organisations and unions that represent the collective interests of the producers of commodities, such as the Alliance for Abundant Food and Energy. By lobbying correctly, a commodity house can ensure that its' business remains out of the spotlight of public interest.