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If you're a fairly new player it might look pointless (it did to me at the time), but it gets very useful and pretty much essential as you progress. As Herodite says, you'll see more trades appearing as you explore more cities on the map, and if you join an active fellowship then you'll see trades from them too.
In terms of the space it uses - yes, that's a pain at first when you're struggling for space. But again, less of a problem as you progress. Have you tried reducing the space you need; e.g. by doing boosted goods only?
As far as I can tell the only boosted goods I have is steel - it's highlighted in the City Hall?
I need a lot of timber to meet upgrades so I've built a lot of plank manufacturers - would your advice be to reduce the number and wait til I can trade with fellowship members?
Thank you for your trouble