In the latest episode of the Strong Source Commodity Podcast, hosts Martijn Bron and Alexander Sterk had the pleasure of welcoming a distinguished guest, Javier Blas. Although not a commodity trader himself, Javier is a revered figure in the industry, known for his extensive experience as a journalist covering macroeconomics and commodities for the Financial Times and Bloomberg. He also co-authored the widely acclaimed book The World for Sale with Jack Farchy, a deep dive into the hidden world of commodity trading.
“What is Javier going to teach me about the ABCD companies and commodity trading?”
Martijn admits he initially resisted reading Javier’s book, thinking he knew everything about commodity trading after years of working in the industry. However, upon reading The World for Sale, he was pleasantly surprised, describing it as “a fantastic book” that reads “like a thriller” but is grounded in the reality of an industry that even he, a seasoned trader, wasn’t fully familiar with.
From Madrid to the Middle East: A Journey into Commodities
Javier’s journey into the world of commodities was anything but direct. Originally interested in geopolitics, particularly the Middle East, he stumbled into the oil market by chance while working at a business newspaper in Madrid. The oil market was in a slump at the time, with prices hovering around $10 a barrel, and when the oil reporter left, Javier volunteered to fill the role despite knowing little about the subject. His curiosity and determination to learn led him to spend time on the trading floor at Repsol, where he got his first taste of the fast-paced, high-stakes world of oil trading. “I thought it was the coolest thing I have ever seen.” Javier recalls his fascination when he first witnessed traders buying and selling oil on the spot market with just their words and a handshake. This moment solidified his interest in commodities, leading him to cover the oil market during the early stages of what would later be known as the commodity supercycle.
A Global Perspective on Commodities
Javier’s career took him from Madrid to London, where he joined the Financial Times and eventually Bloomberg. Over the years, he became known for his in-depth reporting on energy and natural resources. His work has taken him to the far corners of the globe, from oil fields in Libya to copper mines in Zambia, offering him a unique perspective on the industry.
“We need honest trading happening every day.”
During the podcast, Martijn raised the issue of the often negative perception of commodity traders. Javier agreed that while some criticisms are valid, the industry plays a crucial role in the global economy by moving raw materials from surplus to deficit areas, often taking on significant risks in the process. His approach to reporting on the industry has always been to treat it fairly, recognising the importance of honest trading while not shying away from covering the industry’s darker sides.
The Fascination with the Unknown
One of Javier’s favourite aspects of covering the commodities market is the opportunity to uncover stories that are little known outside the industry. For example, he shared his fascination with cocoa pod counters in West Africa, who predict the size of cocoa crops by examining the fruit on cocoa trees. These unsung heroes of the commodities world play a critical role in determining the supply of one of the world’s most beloved commodities: chocolate.
The Challenge of Writing The World for Sale
Writing The World for Sale was no small feat. The research and interviews took about two and a half years, with the writing process taking another six to nine months. The result is a book that offers readers a rare glimpse into the secretive world of commodity trading, shedding light on the industry’s key players and their impact on the global economy.
Looking Ahead: The Future of Commodities
As the podcast drew to a close, Alexander asked Javier about the future of the commodities market. Javier noted that while the structure of the Chinese economy is changing, the demand for commodities remains strong, driven by the industrialisation of emerging markets like India and Indonesia. He also highlighted the importance of transparency in the industry, arguing that it is essential for keeping everyone honest and ensuring that markets function smoothly.
The Thrill and Reward of a Career in Commodities
For those considering a career in commodities, Javier’s message is clear: it’s a challenging but incredibly rewarding field. Whether you’re trading on the front lines or reporting on the industry’s latest developments, the world of commodities offers endless opportunities for those who are curious, determined, and ready to take on new challenges.
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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 them to start this venture: “We’ll be sharing our personal experiences, the valuable lessons we’ve learned along the way, and give you a glimpse of what to expect in our future episodes.” This podcast is powered by Vesper, the leading commodity platform (www.vespertool.com).
