What does a commodity analyst do?
A commodity analyst focuses on the raw material part of the stock market. This job can range from analyzing oil and electricity to soybeans and fruits. Typical tasks of a commodity analyst include monitoring the commodities and market industries, analyzing financial information, and drafting accurate reports for investors. This analyst requires at least a bachelor's degree in finance, economics, or a related field. Other qualifications include using computer software, a thorough knowledge of economics, and analytical skills.
Commodity analyst responsibilities
Here are examples of responsibilities from real commodity analyst resumes:
- Accomplish the RFQ process, providing cost and availability information on a timely basis.
- Manage operational risk and cultivate client relationships through OTC commodities trade confirmation across all commodities.
- Develop detailed databases on supply and demand fundamentals for commodities under review.
- Assist management with evaluation of restructuring alternatives, procurement of financing, negotiations with multiple constituencies and issuance of new securities.
- Query expenditures in PeopleSoft to identify categories to leverage through renegotiating company's contracts.
- Monitor and facilitate flow of automotive material through terminal, coordinating JIT procedures.
Commodity analyst skills and personality traits
We calculated that 13% of Commodity Analysts are proficient in Risk Management, Commodities, and Macro. They’re also known for soft skills such as Interpersonal skills, Problem-solving skills, and Time-management skills.
We break down the percentage of Commodity Analysts that have these skills listed on their resume here:
- Risk Management, 13%
Confirmed and processed gas and electric trades with third parties, recorded trades into inventory and risk management systems.
- Commodities, 12%
Managed operational risk and cultivated client relationships through OTC commodities trade confirmation across all commodities.
- Macro, 7%
Lead projects of data automation by creating Excel macro embedded with VBA script to parse data quickly
- Supplier Performance, 6%
Conducted trend analysis of supplier performance and worked with Buyers to develop improvement plans.
- VBA, 6%
Optimized business reporting procedures using Excel VBA and Access to consolidate cross-company data into weekly reports available to senior management.
- Derivative, 5%
Review complex derivative structures with known input/model weaknesses to ensure banks Pre-Trade Approval/Approximate Booking Approval policies are enforced.
Common skills that a commodity analyst uses to do their job include "risk management," "commodities," and "macro." You can find details on the most important commodity analyst responsibilities below.
Interpersonal skills. To carry out their duties, the most important skill for a commodity analyst to have is interpersonal skills. Their role and responsibilities require that "management analysts work with managers and other employees of the organizations for which they provide consulting services." Commodity analysts often use interpersonal skills in their day-to-day job, as shown by this real resume: "applied interpersonal, analytical and computer skills to troubleshoot incoming problems and disbursed cases to the appropriate information systems team members. "
Problem-solving skills. Another soft skill that's essential for fulfilling commodity analyst duties is problem-solving skills. The role rewards competence in this skill because "management analysts must be able to think creatively to solve clients’ problems." According to a commodity analyst resume, here's how commodity analysts can utilize problem-solving skills in their job responsibilities: "analyzed and resolved edi vendor transaction issues including rejects, vendor setup and vendor service issues. "
Time-management skills. commodity analysts are also known for time-management skills, which are critical to their duties. You can see how this skill relates to commodity analyst responsibilities, because "management analysts often work under tight deadlines and must use their time efficiently to complete projects on schedule." A commodity analyst resume example shows how time-management skills is used in the workplace: "manage suppliers on time delivery, cost reduction, and develop new supply sources. "
Analytical skills. For certain commodity analyst responsibilities to be completed, the job requires competence in "analytical skills." The day-to-day duties of a commodity analyst rely on this skill, as "management analysts must be able to interpret information and use their findings to make proposals." For example, this snippet was taken directly from a resume about how this skill applies to what commodity analysts do: "updated mrp procurement static data and transitioned new design components to sustaining production/purchasing. "
Communication skills. A commonly-found skill in commodity analyst job descriptions, "communication skills" is essential to what commodity analysts do. Commodity analyst responsibilities rely on this skill because "management analysts must be able to convey information clearly in both writing and speaking." You can also see how commodity analyst duties rely on communication skills in this resume example: "excel in creating supplier relationships by building communication and developing a strong teaming environment conducive to overall success. "
The three companies that hire the most commodity analysts are:
- Fifth Third Bank4 commodity analysts jobs
- Pentair4 commodity analysts jobs
- Bank of America2 commodity analysts jobs
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Compare different commodity analysts
Commodity analyst vs. Purchasing supervisor
A purchasing supervisor orders supplies, equipment, and materials from vendors by buyers. The purchasing supervisors assess, select, and build relationships with the vendors. They do the negotiation for the contracts of goods and services. It is their job to review the purchase orders for accuracy and ensure to obtain the best prices. The skills supervisors need to develop include marketing, communication, leadership, and management. They should also know about purchasing products and services.
These skill sets are where the common ground ends though. The responsibilities of a commodity analyst are more likely to require skills like "risk management," "macro," "vba," and "derivative." On the other hand, a job as a purchasing supervisor requires skills like "logistics," "corrective action," "on-time delivery," and "continuous improvement." As you can see, what employees do in each career varies considerably.
Purchasing supervisors tend to make the most money working in the technology industry, where they earn an average salary of $75,683. In contrast, commodity analysts make the biggest average salary, $95,688, in the finance industry.The education levels that purchasing supervisors earn slightly differ from commodity analysts. In particular, purchasing supervisors are 2.9% less likely to graduate with a Master's Degree than a commodity analyst. Additionally, they're 0.7% less likely to earn a Doctoral Degree.Commodity analyst vs. Planner/buyer
The role of buyers/planners is to ensure that office materials and equipment are well-supplied within their organization. They decide and purchase the materials needed for use or resale by their organization. They are responsible for evaluating prospective suppliers based on their cost, product quality, and delivery times. They are also the ones who negotiate contracts specifying the payment terms, price, and delivery schedules. Most employers prefer their buyer to have earned a bachelor's degree with a major in operations management or business management.
Each career also uses different skills, according to real commodity analyst resumes. While commodity analyst responsibilities can utilize skills like "risk management," "macro," "vba," and "derivative," planner/buyers use skills like "supply chain," "customer service," "logistics," and "production schedules."
Planner/buyers earn a lower average salary than commodity analysts. But planner/buyers earn the highest pay in the technology industry, with an average salary of $62,806. Additionally, commodity analysts earn the highest salaries in the finance with average pay of $95,688 annually.Average education levels between the two professions vary. Planner/buyers tend to reach similar levels of education than commodity analysts. In fact, they're 3.7% less likely to graduate with a Master's Degree and 0.7% less likely to earn a Doctoral Degree.Commodity analyst vs. Purchasing buyer
In a retail setting, a purchasing buyer is primarily responsible for devising strategies for procuring supplies, ensuring that it aligns with the company's needs and standards. They are also responsible for conducting thorough marketing research and analysis, coordinating with different departments to gather and process documentation, liaising and negotiating with vendors and suppliers, and keeping track of all purchasing orders to ensure accuracy and timeliness. Furthermore, as a purchasing buyer, it is essential to maintain records of all transactions and submit regular reports to supervisors.
There are many key differences between these two careers, including some of the skills required to perform responsibilities within each role. For example, a commodity analyst is likely to be skilled in "risk management," "macro," "vba," and "derivative," while a typical purchasing buyer is skilled in "logistics," "inventory control," "delivery dates," and "pos."
Purchasing buyers earn the highest salary when working in the automotive industry, where they receive an average salary of $49,368. Comparatively, commodity analysts have the highest earning potential in the finance industry, with an average salary of $95,688.Most purchasing buyers achieve a similar degree level compared to commodity analysts. For example, they're 3.9% less likely to graduate with a Master's Degree, and 0.9% less likely to earn a Doctoral Degree.Commodity analyst vs. Senior buyer
The job of senior buyers, or also known as purchasing agents, is to meet the material needs of an organization. They are responsible for finding suppliers, arranging the distribution to several retail outlets, and supervising other purchasing agents. They also look for new product streams and establish procurement strategies. Senior buyers typically begin their careers as assistant buyers or junior purchasing agents. Most employers usually prefer those with college degrees in marketing, business, and economics.
Types of commodity analyst
Updated January 8, 2025
