The commodity traders are arbitragers par excellence, trying to exploit a series of differences in prices. Because they’re doing deals to buy and to sell all the time, they are often indifferent to whether commodity prices overall go up or down. What matters to them is the price disparity – between different locations, different qualities or forms of a product, and different delivery dates. By exploiting these price differences, they help to make markets more efficient, directing resources to their highest value uses in response to price signals. They are, in the words of one academic, the visible manifestation of Adam Smith’s invisible hand.

There are companies richer that big countries, that you never heard about. The book presents the history of commodity trading firms, from their start in early 60s to present day. Commodities are energy, metals and agricultural products that we commonly use. As trading grew and become global, these firms picked up, increased the trend and developed the global flows of products that fuel our lives and industries and feed ourselves.

Starting from trading oil, the global commodity traders, overwhelmingly European and based in Switzerland, become global power houses, not only in trading, but also in producing goods, owning warehouses and financing industries and countries.

On the good side, global commodity trading dramatically decreased prices for costumers, using every opportunity to create a better deal, a better price. In this endeavors, traders because rich, with profits in the billions.

On the bad side, those firms bought from and financed dictators, morals or international sanctions having little to do with a good deal.

What makes the book interesting is that it’s exceptionally well researched, dynamic and manages to present all major global commodity traders in an un liniar way. There is a plethora of stories and characters.

Also memorable is how some of the richest companies in the world grew quietly, outside press or magazines. Only an IPO in the early 2010s started to shed some light on their fabulous incomes, all of them being private before that and even now.

This is an exceptional, real world, contemporary, well researched, well written, engaging and memorable book. What a read!