Streetwise Professor Craig Pirrong Publishes White Paper on Economics of Commodity Trading Firms

University of Houston Finance Professor Craig Pirrong published a white paper titled, "The Economics of Commodity Trading Firms," which presents the economic role of the commodities trading sector, how it manages risk and financing, how it is governed, and the factors driving commodity trading firms' investment strategies.

The paper concludes that commodity trading firms transform commodities in space, time, and form in order to enhance their value. According to the paper, in moving commodities from low-value uses to high-value ones, commodity trading firms enhance the wealth and welfare of both producers and consumers.

See: The Economics of Commodity Trading Firms White Paper; Streetwise Professor Blog Post.