| From the middle of the last decade, large banks world-wide got involved in business far removed from their traditional lending activity – trading in physical commodities. Currently, these banks are retreating from this activity. The shift is empowering commodity trading houses to consolidate their control over supply chains for food, oil and metals.
Commodity traders are rapidly expanding from the traditional intermediary business model of buying and selling, where margins are very thin, to “asset-backed trading models”, where they are investing in production, processing, and logistics...............................................Full Article: Source
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