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Commodity trade Finance News

* Citi to move into agricultural trade finance this year

* Exit of JP Morgan, Morgan Stanley provides opportunities

* Team to double from 14 within 3 years, aims for top 5 spot

LONDON, May 16 (Reuters) - Citigroup plans to double its commodities trade finance team within the next three years as it seeks to benefit from a retreat by some rival banks, the head of the business said.

Citigroup is one of the biggest players in trade finance but has been relatively small in the specific area of commodities trading. It started building a commodities trade finance team to focus on the sector in 2012.

Trade finance is a form of short-term lending or guarantee that ensures payment is made on an international shipment of goods.

Kris Van Broekhoven, global head of commodities trade finance at Citi, told Reuters he hoped to double the team's 14-strong headcount within three years and become a top five player.

"We started in energy in 2012, expanded into metals and minerals in 2013 and plan to move into agricultural commodities by the end of 2014, " he added.

The bank aims to capitalise as rivals such as Morgan Stanley and JP Morgan withdraw from the business of trading physical assets such as cargoes of crude oil or metals.

"They are selling these platforms or exiting the business. Trading platforms are being picked up by producers, private equity and trading houses, " Van Broekhoven said.

JP Morgan has agreed to sell its commodities trading operation to Swiss-based commodities trading house Mercuria, while Morgan Stanley has sold its business to Russian oil major Rosneft.

When these trading operations were part of investment banks, the traders could easily rely on their own banks to provide trade financing.

"But when they move, their funding changes, and they turn to the commodity trade finance banks to fund them, so that creates an expanded market for us, " Van Broekhoven said. (additional reporting by Charles Staples; editing by Jane Baird)

The panic hasn't even started!


As ordinary citizens with no power over the levers of policy, we watch from the sidelines, and weep. The whole global economy has tipped into a downward spiral. Trade and output are contracting at rates that outstrip the leisurely depression of the 1930s. Debt deflation has simply washed over the drastic measures taken by governments everywhere.
Judging by the latest Merrill Lynch survey of fund managers, investors have a touching faith that China is going to rescue us all and re-ignite the commodity boom

Get ready for higher long term interest rates

by NiteCrawlerofTruth

Higher U.S. interest rates will be due to:
1. Higher inflation; cheaper dollar. T-buyers are demanding a higher
interest rate to compensate for inflation and the falling dollar.This
inflation is caused by higher world commodity prices and is outside
control by the Fed Reserve.
2. Foreign sovereign funds are pulling out of U.S. Treasuries. The
Chinese economics minister and OPEC spokesman and others have already
announced this pull back Foreigners, who own more than half of our $9.5

News Briefs.(includes multiple briefs on various topics): An article from: Implement & Tractor
Book (Agra USA)

Commodity finance being done by Trading Houses  — Spend Matters
And banks fund these companies through trade lines, just like they fund so many hedge funds, factors, and others now interested in trade receivables. See – Shadow Banking Market grows and grows and Commodity Trade Finance – Still the Banks' Domain.

McGraw-Hill Abnormal Returns: Winning Strategies from the Frontlines of the Investment Blogosphere
eBooks (McGraw-Hill)
Aurus Group Pty Ltd Mobile Forex
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eBooks (INTERNATIONAL MONETARY FUND)

Popular Q&A

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How can i get job in an online trading co. for commodities?

yeh you can get a job on-line they are many websites you can go through that and try for a job.If you can learn foreign languages like spanish,germin,chinese etc you can teach those people english and you will be paid very highly

hope you do this

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What is the job description of a finance manager?

A finance manager manages accounting, administration, business records, transactions, bills, anything that is finance related to any particular business. A finance manager organizes, helps lower costs in any way possible to help a business become more profitable.

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What is the job description of a commodity manager?

A Commodity Manager is the person who is responsible for sourcing and purchasing goods that are needed by the company, whether it is the raw materials for manufacturing into finished articles or whether it is the more basic items such as fuel to keep the factory functioning.

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