Not too many people have had the type of impact on the commodity markets that Richard Sandor has. Many of the people who are very well-known are the traders such as Victor Sperandeo, Jim Rogers, or George Soros. Sandor has been involved with commodities for 40 years.
In the 1970s, Sandor was the chief architect behind interest rate futures. Traders would not be able to trade the yield curve without his foresight.
He has been an advisor to every major commodity exchange in the United States over the course of his career. Never to stop innovating, he founded the Chicago Climate Exchange (CCX) in 2003 where you could trade gas emissions, including carbon dioxide, nitrous oxide, and methane. The CCX was purchased by The ICE in 2010.
Sandor was on a very insightful panel at the Milken Global Conference earlier this month called “The Commodities Boom.” There, the discussion ranged from unrest in West Africa where 40% of the world’s cocoa comes from; flooding and drought (in Russia particularly, where wheat went up in blazes), and upheaval in the middle east (Tunisia, Egypt, and Libya) and its effect on crude oil prices.
I caught up with Sandor for this exclusive interview after his panel to have him amplify some of his answers and concerns: In it you’ll hear him discuss:
- the benefits of futures
- whats happening between Brent crude and West Texas Intermediate crude oil
- shale and natural gas
- what he thinks the commodity for the 21st century is.