From Trading Desks to CEO: Daan Vriens on Leadership, Risk, and the Evolving World of Commodities”
In our latest episode of the Strong Source Commodity Podcast, we had the privilege of hosting Daan Vriens, CEO of Cefetra, who shared his journey from the early days as a commodity trader at Cargill to leading one of the most prominent trading firms in the world. Daan’s story is a compelling mix of personal anecdotes, strategic insights, and lessons on leadership that offer invaluable advice for anyone interested in the dynamic world of commodity trading.
Starting Out: The Early Days at Cargill
Daan’s career in commodities began at Cargill, where he started as a trainee in Rotterdam. Reflecting on those early days, he shared how trading was a way of life at Cargill, with traditions that bonded the team together. “We had a fantastic tradition that as a trainee, when you did your first trade, you needed to invite the whole trading floor to celebrate. The whole Amsterdam team would visit Rotterdam and vice versa,” Daan reminisced.
He quickly rose through the ranks, but as his career progressed, he faced a pivotal decision that many traders encounter—whether to continue trading or to take on broader management roles. “After eight years of trading, I thought, ‘Do I do this my whole life?’ For me, that was too narrow,” Daan explained. This desire for something broader led him to explore roles beyond trading, eventually taking on more general management positions within Cargill.
Leadership in Trading: Balancing Freedom and Responsibility
One of the key themes in our conversation was the importance of freedom in trading and leadership. “A trader needs to have the freedom to decide without always having the feeling that someone looks over their shoulder. Then they become defensive, and defensive and trading don’t go together,” Daan emphasized. This philosophy of decentralization and empowerment has been a cornerstone of his leadership at Cefetra.
However, with freedom comes responsibility, especially during critical moments. Daan recalled the early days of the Ukraine conflict as an example of when decisive leadership is crucial. “I really stepped in. I said, ‘No, I want to maximize exposure to Romania instead of Ukraine,’ even though I didn’t believe in the war either. The impact would be huge if it happened,” Daan shared. This decision was a gamble that could have cost the company millions, but his focus on risk management over potential profit proved to be the right call.
The Evolution of the Market: Adapting to New Realities
As the commodities market has evolved, so too has the approach to trading. Daan discussed how the rise of hedge funds and algorithmic trading has changed the landscape, making traditional hedging strategies less reliable. “The correlation between premiums and futures has become very unpredictable. A premium position is as risky as an outright flat or short,” Daan noted.
In response to these changes, Cefetra has adapted by integrating more sophisticated market intelligence and fostering relationships with hedge funds to better understand their positions and strategies. “We’ve reached out to these hedge funds, and we start to understand their positioning better,” Daan explained, highlighting the importance of evolving alongside the market.
Advice for Aspiring Traders: Passion and Adaptability
For those looking to break into the world of commodity trading, Daan had some clear advice: passion and a willingness to fail are key. “Commodity trading is 24/7. It’s always in your head, so you need to be addicted to it,” he said. He also stressed the importance of resilience in the face of failure, a trait that separates successful traders from the rest. “A very good trader is right six or seven out of ten times, but when you’re wrong, it’s a very lonely place,” Daan reflected.
Daan also encouraged young professionals to reach out and learn from those already in the industry. “Almost every commodity trader loves to explain about it. We’re passionate,” he said, inviting listeners to connect with industry veterans to gain insights and mentorship.
Conclusion: A Career Built on Passion and Strategic Thinking
Daan Vriens’ journey from the trading desks of Cargill to the CEO’s office at Cefetra is a testament to the diverse opportunities within the commodity sector. His ability to blend the analytical rigor of trading with the strategic foresight of leadership has allowed him to navigate the complexities of the global commodities market successfully. For aspiring traders and future leaders, Daan’s story is a powerful reminder that success in this field requires a unique combination of passion, adaptability, and strategic thinking.
Listen to the full episode to hear more about Daan’s journey and his insights into the world of commodities trading:
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
