Commodity Trading Fundamentals

Overview

The programme explores how trading companies are structured, who does what inside them, the role of key service providers, and how different commodity sectors — from agriculture and metals to energy — operate.

Participants then follow physical trades from opportunity through pricing, negotiation, contracts, finance, operations, shipping, documentation, payment and risk to final P&L.

Recurring model trades, realistic industry documents, practical scenarios and interactive exercises are used throughout to show how the different functions interact and how individual decisions affect the overall trade.

The course is designed for :

• newcomers to the industry,
• employees working across trading and support functions,
• service providers and
• anyone seeking a practical understanding of how the commodity trading industry works.

Program

The course combines an overview of the commodity trading industry with a practical walkthrough of how physical trades are structured, executed and managed.

• Industry structure and market participants
  How trading companies are organised, the roles of different teams, the importance of external service providers, and how activity differs across agriculture, metals and energy.
• Commercial structure and pricing
  Why traders exist, how value is created, how physical commodities are priced against benchmarks, and how margin, optionality and trade attractiveness are assessed.
• Contracts, Incoterms and negotiation
  How commercial terms allocate cost, responsibility and risk, and how recaps, contracts and General Terms & Conditions fit together.
• Finance, payment and documentation
  Working capital and trade finance, payment methods and Letters of Credit, Bills of Lading and the documentary chain supporting physical trade.
• Operations, shipping and logistics
  How a trade moves from agreement to physical execution, including nominations, vessel selection, freight, chartering, ports, laytime and demurrage.
• Risk, compliance and problem-solving
  Hedging, insurance, counterparty and vessel compliance, sanctions and traceability, together with the practical management of claims, delays and other problems.

Lecturer

Richard Watts

HR Maritime

President of the Geneva branch of The Propeller Club.
Fellow of The Institute of Chartered Shipbrokers.
President of SOS Mediterrannee Suisse.