Glencore: Profiteering from hunger and chaos

[Jefferson23]

The world's largest commodities trader is issuing a stock sale, and critics say the firm causes spikes in food prices.


May 9, 2011

The rapid rise in prices for food, fuel and commodities has been disastrous for the world's poor, including Indonesian market vendor Lia Romi. But it's a bonanza for multinational trading firms such as Glencore.

While Romi has trouble feeding her family, Glencore - the world's largest diversified commodities trader - is planning a US$11billion share sale, likely the largest market debut ever seen on the London Stock Exchange.

"The price for our daily food has at least doubled in the past two years," Lia Romi told Al Jazeera through a translator. "Food costs 100 per cent of my family's daily income . I have nothing saved and I owe from my business."

While Romi, and millions like her, worry about feeding their families, the initial public offering from the commodity speculating giant will create at least four billionaires, dozens worth more than $100million and several hundred old fashioned millionaires. Chief Executive Ivan Glasenberg is set to make more than $9bn from the share sale. And speculating on food prices is an important part of his wealth.

Controlling prices

Valued at about $60billion, Glencore controls 50 per cent of the global copper market, 60 per cent of zinc, 38 per cent in alumina, 28 per cent of thermal coal, 45 per cent of lead and almost 10 per cent of the world's wheat - according to information the firm disclosed prior to its share sale. It also controls about one quarter of the world market in barley, sunflower and rape seed.

remainder in full: http://english.aljazeera.net/indepth/features/2011/05/20115723149852120.html

[pscot]

1. Nothing personal

It's just business.

[Jefferson23]

3. Sad beyond words, isn't it?

This thread had an unrecommended too, hard to understand why anyone would do that after reading it.

[Lucky Luciano]

2. ...and only Goldman was left out of the underwriting!

I wondered if that slight to Goldman was why Goldman put out a note two weeks ago saying it was a good time to sell commodities.