In our latest episode of the Strong Source Commodity Podcast, we had the pleasure of welcoming Ben Tacken, the Global Procurement and Trading Director at De Heus Animal Feed. Ben’s extensive and diverse experience in the commodity trading world offers valuable lessons for anyone navigating the complexities of global markets.
From Amsterdam to Geneva: A Journey in Trading
Ben’s journey began in the bustling trading floors of Cargill in Amsterdam, where he was first introduced to the high-energy environment of commodity trading. Reflecting on his early days, Ben recalls, “I didn’t know exactly what I was going to do, but this is really something fantastic. This is what I want to do.” This enthusiasm and passion for trading led him to Geneva, where he took on the challenge of trading grains and oilseeds.
The move to Geneva marked the beginning of what Ben described as a “fantastic period,” filled with high-stakes trading and weekend skiing adventures. This phase in his career was not just about the trades; it was also about building lifelong friendships and enjoying the unique lifestyle that comes with being part of Geneva’s elite trading community.
Diving Into Energy Markets
Ben’s career took an interesting turn when he was asked to explore the biodiesel market. Realizing that to understand biodiesel, he needed to understand the larger energy market, Ben dove headfirst into the world of mineral oil and diesel. “I noticed it was so much bigger than the biofuels at that time,” he shared. This curiosity and willingness to explore new territories led him to the coal market, where he played a key role in setting up a new desk at Cargill.
His time in the energy sector was marked by the creation of what he called the “convergence desk,” where he traded across multiple commodities, understanding their interconnectedness. “Ethanol, gasoline, corn, crude—it’s kind of a box and they influence one another,” Ben explained, showcasing his ability to see the bigger picture in the complex world of commodities.
Embracing the Physical Side of Trading
After years of screen trading, Ben felt the need to reconnect with the physical side of trading. “I missed the physical part of trading…just pushing buttons and watching screens wasn’t enough,” he admitted. This led him to De Heus Animal Feed, where he took on the role of head of procurement and trading, managing a much larger team and dealing with the physical aspects of the business.
The transition wasn’t without its challenges, but Ben found it rewarding. He emphasized the importance of open communication within his team, ensuring that everyone was on the same page, whether they were buying corn in Vietnam or managing logistics in Europe. “By creating that open communication, you have a lot of market leverage,” Ben noted, highlighting the strength of De Heus’s global presence.
Adapting to Different Markets
One of the most impressive aspects of Ben’s career is his ability to adapt to different markets and trading environments. Whether it was moving from agricultural commodities to energy, or shifting from screen trading to physical trading, Ben’s agility and curiosity have always been his strengths. “You have to combine all these pieces… when they are a bit aligned, you can take a position,” he advised.
The Role of S&D and the Power of Fundamentals
Throughout his career, Ben has always emphasized the importance of supply and demand (S&D) analysis. “Setting up an S&D can be quick, but proving it and monetizing on it takes time,” he explained. At De Heus, he has invested heavily in training his team to develop strong S&Ds, believing that a deep understanding of fundamentals is crucial to success in commodity trading.
Staying Detached from Positions
One of the most valuable lessons Ben shared was the importance of staying detached from trading positions. “The main question you have to ask yourself is, would I do the same thing now knowing what I know now?” Ben stressed. This ability to reassess and remain flexible is what has allowed Ben to navigate the often turbulent waters of commodity trading.
Looking Ahead
As we wrapped up the episode, Ben shared his thoughts on the future of commodities. With the world becoming increasingly aware of the importance of commodity flows, Ben sees opportunities in markets like water, which he believes will be a major focus in the coming decades.
His closing advice to young traders was simple yet profound: “Don’t fall in love with your position.” It’s a reminder that in the world of commodities, staying adaptable and being ready to pivot are key to long-term success.
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What is the Strong Source Podcast?
Our mission with the Strong Source podcast is to educate and inform, by creating a community where experts and guests from the entire commodity industry can share their unique perspectives. Martijn Bron, ex-cacao trader, and Alexander Sterk, ex-dairy trader and founder of Vesper, have a deep-passion for this industry, which inspired
