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5 days, a 3rd QE, 2 GASC tenders, USDA report… What a week!
GASC bought twice last week, puting their total purchased for this campaign at 1,720Mmt already.
French wheat was able to trade at a discount vis-à-vis Eastern European origins for the last tender.

September 17, www.AgriNews.com

US wheat futures were firmer and corn futures lower after the USDA report. Wheat stocks worldwide are getting tighter and USDA increased the US end corn stocks which many looking at the fundamentals do not believe! September 13

The corn market is anxiously awaiting Wednesday’s USDA report, which should see bold adjustments made within the politico-mathematical boundaries and provide the basis for corn to abandon $8 range and climb further.

www.AgriNews.ch, Sept 10, Geneva, Switzerland

A lot of bullish factors and an upcoming USDA report made for an interesting week Good export sales, firmer Eastern European prices at the GASC tenders, concerns for yields over Aussie weather, and a really weaker USD provided bullish support last week.

GASC once again tendered last week and bought 475kt as follows: Oct 21/31 – 300kt Ru/Ro @$327.45-333. Nov 1/10 – 175kt Ru/Ro/Ukr @US$329.51- 336.33

These tender results brought interesting news to the markets, with the spread between Eastern European origins and others now narrowing (French wheat was only $5 above). Last week, estimates put Ukrainian crop exports @1.67Mmt, already 42% of their stated 4Mmt export potential. The time for origin substitution is certainly nearing, and even though Western European origins might want to wait for restrictions in the East to sell at a better profit, Southern Hemisphere crops are coming rather fast. There is also the fact that next campaign’s wheat trades at a $40 discount, so one does not want to be forced to carry wheat out. The higher prices on the GASC tender pushed the futures markets up. This, together with a globally improving 3rd country demand (eg Saudi Arabia buying 575kt for Dec/Feb), a weaker USD (right now @1.2781 against the €uro), a rapidly decreasing Eastern European supply, and concerning Aussie weather and Canadian crop, made for a good bullish support across all markets.

This week’s USDA report, on the 12th, will be much awaited in order to provide a direction. A lot is already in the markets as traders have formed their expectations, but it’ll be interesting to see what the USDA has to say.
www.AgriNews.ch – Sep 10, Geneva, Switzerland

LONDON, Sept 6 (Reuters) – U.S. bank Citigroup C.N has launched a commodity trade finance unit, expanding into a sector once dominated by European lenders who have been shrinking their activities to cope with the euro zone debt crisis.

Citigroup has hired Kris Van Broekhoven from Deutsche Bank DBKGn.DE to lead the new unit, part of its transaction services business, a spokesman said on Thursday.

The bank also said it has hired two bankers from BNP Paribas BNPP.PA to work in its commodities business – in which it buys and sells anything from energy to grain on behalf of clients.

It has hired Jose Cogolludo as global head of commodity sales, the bank said. He was formerly a senior commodity banker at BNP. Fasil Nasim, who was head of European energy sales at BNP, will also move to Citi, with the same function.

U.S. banks have been expanding fast in commodities trade finance, as French banks such as BNP Paribas and Societe Generale SOGN.PA retreat. (Full Story)

The likes of Citi, JP Morgan JPM.N and Merrill Lynch BAC.N have been expanding their commodities trade finance portfolio for oil, coal, steel and iron ore.

Previously, the bank had only financed commodity trades occasionally, the spokesman said.

Citigroup chief executive Vikram Pandit singled out trade finance as one of the brighter spots for the bank, saying earlier this year Citi was increasing revenue for transaction services for corporations to record levels.

Trade loans were up 53 percent at the end of June from a year earlier, according to the company

US wheat and corn futures were well lower yesterday on good technical liquidation and were probably a little too oversold.

Persistent longs still awaiting salvation Bernanke’s speech on Friday indicated a readiness by the FED to launch a third round of asset buyback to prop up growth, injecting fresh dynamism into gold and industrial commodities whilst taking the USD down against the Euro. Crude oil continued its rise, with Brent crude for Oct delivery reaching $114.57 on Friday.

We will keep this blog for trends and news in the international recruitment market AND in international commodities market.

Weekly Wheat Market 

A lot of news but no clear direction.

Good export business, weather in Australia, a good Canadian harvest, and speculations about export restrictions in Russia made for a mixed week on wheat markets with futures ending slightly higher.

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