DerivaQuote

Commodity Derivatives

Commodities are the raw materials that a business uses. Like interest rates and stock prices, they are a source of significant risk themselves.

The next guy who talks to me about tonnage is going to get his salary in tons, and we'll see how he converts that into dollars.

John C. Lobb, President
Crucible Steel Co.
The New York Times, March 29, 1967

It's hard enough to get anyone to listen when you mention derivatives, but if you team them up with commodities, people tend to want to run a mile.

Anonymous derivatives trader
Risk, January, 1995

The amount of integrity required to carry on business as it is currently done in the commodities industry is nothing short of phenomenal.

Mark Ritchie
God in the Pits: Confessions of a Commodities Trader
1990, p. 185

What is exotic in the money market is plain vanilla in electricity [markets].

John Wengler
Derivatives Strategy
September, 1992, p. 46

Far Prettier than Pork Bellies.

Sotheby's ad for auction of Impressionist and Modern Art
The Wall Street Journal
May 8, 1998.

My option gave me the right to a futures contract for that much hog until October. Considering the average size of a hog, which I figured to be 500 pounds, this gave me a potential controlling interest in 600 animals. Right then, I vowed to eat more pork chops and bacon, and to call my friends to beg them to do the same. Working together, maybe we could drive up the price.

John Rothchild
A Fool and His Money
1997, p. 183

The cheapest commodity in the world is investment advice from people not qualified to give it.

Louis Engel
Money Talks
Rosalie Maggio, 1998, p. 151

Return to DerivaQuote page

Last updated:  January 9, 2011