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The Endgame for Commodity Traders - …

THE Endgame FOR Commodity TRADERSWHY ONLY THE BIGGEST AND DIGITALLY ADVANCED Traders WILL THRIVEA lexander Franke Roland Rechtsteiner Graham SharpThe Commodity trading industry is confronting a new, less profitable reality. After flatlining for several years, the industry s gross margins in 2016 dipped percent to $42 billion, our research shows. (See Exhibit 1.) This decline is setting off a torrent of deal-making and speculation that is transforming the face of Commodity trading with examples like Hong Kong-based Noble Group selling part of its business to the global energy trader , Vitol; oil trader Gunvor in talks with potential acquirers; and Swiss trading giant Glencore circling US grain trader Bunge.

THE ENDGAME FOR COMMODITY TRADERS WHY ONLY THE BIGGEST AND DIGITALLY ADVANCED TRADERS WILL THRIVE Alexander Franke • Roland Rechtsteiner • Graham Sharp

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