Physical Commodity Supply and Purchase
In response to huge demand CWC Gulf International
initiated its own commodity trading office
in Autumn 2006. Specialising in the most
popular sought after items such as Brazialian
bulk sugar, Urea, Cement and Metals, CWC
Gulf has built reliable relationships
direct with key producers, suppliers and
capable purchasers. We have simplifed
the process of purchase and sale by using
standard agreements and proven procedures.
PLEASE NOTE THAT WE DO NOT CURRENTLY DEAL
IN FUTURES
Our motto is "Excellence through Reliability".
We have built a small executive team and
a selection of commodity brokers working
alongside our trade finance specialists
and who are all committed to providing
the types of effective, reliable and customer
focused transactions that are difficult
to find in the general market place and
brokerage world which can be a minefield
for many.
CWC Gulf International are dedicated to
providing you with exceptional commodity
trading expertise from trade inception
to execution. Whether you are an experienced
trader or just getting started, we offer
a comprehensive commodity brokerage service.
We are experienced, committed and knowledgeable
about the trade execution process. We
have extensive trading floor contacts
who will work hard for us, as hard as
we work on behalf of our customers. The
CWC Gulf execution team has the ability
to efficiently and effectively execute
complicated and other challenging transactions.
At CWC Gulf, we also place very high priorities
on customer education and communication.
We provide our customers with an in-depth
understanding of the commodity trade process
and a variety of ways to communicate with
us. In addition, we have an abundance
of commodity trading, and trade finance
resources available to our customers.
Specialists
in Grains, Pulses and Edible Oils
|
RUSSIAN GRAIN
Russian Hard White Wheat 1st Class
14.0
Russian Hard White Wheat 1st Class
12.5
Russian Sorghum 1st class 11.0
Russian Feed Barley 13.5%
CORN
Brazilian Yellow Corn #1
EDIBLE
OILS
Malaysian RBD Palm Oil
Malaysian RBD Palm Olein
Malaysian RBD Palm Stearin
Malaysian RBD Palm Kernel Oil
Malaysian Crude Palm Kernel Oil
Refined Russian Sunflower Oil
Canadian refined Soya Oil
Canadian refined Canola Oil
PULSES
Canadian # 1 Red Lentils Whole
Canadian # 1Red Lentils Split
Canadian # 1Chickpeas 9mm
Further details contact:
Simon Pook (s.pook@cwcgulf.com)
Tel: +44 780 123 6135
or
Reza Karimi (karimi.nik@cwcgulf.com)
Tel: +44 797 338 3034
|
Trade Finance,
Forfaiting and Discounting
CWC Gulf have also developed a unique
and proven system of Project and Commercial
Financing utilizing SBLC/ Bank Guarantee
discounting. For Companies holding SBLC's
(Stand by Letters of Credit) issued by
most secondary Banks or Central Banks
in practically all Countries of the World,
we have arrangements in place with our
London and Dubai Bankers for discounting
SBLC's and providing clients with immediatly
available cash. The procedure sometimes
referred to as Forfaiting (although our
system is a modified extension of it)
is most usually undertaken by entering
a standard and optional revolving Project
Finance agreement with CWC Gulf over one
year and for any sum up to approximately
US$100 million
Larger amounts may also be arranged under
this scheme subject to the Bank's Country
capacities. If your Company has an SBLC
and requires immediate cash financing
then contact us now. We can help and in
full compliance of International and UK
Banking Regulations.
|
|
Comply
with International Banking Law |
|
About Brazilian
Sugar
Brazilian sugarcane production for 2002/03
was estimated at 320 million tons, down
4 percent from the USDA's previous projection,
due to weather related problems. The Center-South
(CS) harvest is expected to be over in
November, whereas the North-Northeast
(NE)crushing season has just started.
Total sugar production for 2002/03 has
been revised downward from 22.75 million
tons, raw value to reflect updated sugarcane
availability. Brazil's 2002/03 sugar exports
are projected at 13.1 million tons, raw
value up 13 percent from 2001/02, reflecting
higher availability of the product and
the steady depreciation of local currency.
As of July 1, 2003, the Brazilian Government
set total alcohol content in gasoline
at 25 percent. On September 27, the Brazilian
Government requested consultation on European
sugar subsidies at WTO.
Brazil's sugarcane production for marketing
year 2002/03 (May-April) was projected
at 320 million tons, down 4 percent compared
to the previous estimate, especially due
to a downward revision in the (CS) region
projection.
The CS is expected to contribute 270 million
tons of sugarcane, down 12 million tons
relative to the previous projection. The
estimate for area planted to sugarcane
remains unchanged at 5.07 million hectares.
Total area for harvest is projected at
4.81 million hectares. In spite of the
good market prices for both sugar and
alcohol, sugar-alcohol mills have been
adjusting their finances rather than investing
in new sugarcane areas.
The average Brazilian yield for sugarcane
production is estimated at 66.5 tons per
hectare, a 4 percent decrease compared
to the previous figure as a result of
the dry weather that prevailed during
the April/May to August period. The dry
weather has, in turn, supported good industrial
yields and the updated projection for
the 2002/03 industrial yield is 141.23
kg of total reducing sugars (TRS) per
metric ton of sugarcane, up 2 percent
from previous projection.
The 2002/03 TRS breakdown for sugar and
alcohol production is estimated at 49.8
and 50.2 percent, respectively, similar
to the 49.2 - 50.8 percent adjusted breakdown
for 2001/02. Total TRS for the 2002/03
crop is projected at 45.19 million tons,
up 4.19 million tons relative to 2001/02.
The expected decrease in the sugarcane
output has been partially offset by higher
industrial yields.
Total Brazilian sugar production for 2002/03
is estimated at 22.75 million tons, raw
value, slightly down from previous projection,
but up 2.35 million tons from the revised
production estimate for MY 2001/02 (20.4
million tons, raw value). The CS should
account for 19.4 million tons of sugar,
whereas the NNEE should account for the
remaining 3.35 million tons. Total alcohol
production for 2002/03 has been revised
downward to 12.5 billion liters (7.05
billion liters of anhydrous alcohol and
5.45 billion liters of hydrated alcohol),
down 0.5 billion liters from the previous
forecast. The 2002/03 updated projection
is, however, 1.03 billion higher than
the final official figure for 2001/02
alcohol production, as reported by MAPA
(6.48 billion liters of anhydrous alcohol
and 4.99 billion liters of hydrated alcohol).
The 2002/03 projections indicate that
most of the expected reduction in sugarcane
production is likely to affect total alcohol
output, vis-a-vis sugar production. Note
that alcohol projections take into account
the alcohol content in the gasoline-alcohol
mixture, set at 24 percent from May 1
to June 30 and at 25 percent as of July
01, 2002, as determined by the Brazilian
Government. Projections also take into
account the projected increase in alcohol
demand as a consequence of projected growth
in the automobile fleet and alcohol exports.
In addition, the significant difference
between alcohol and gasoline retail prices
in the domestic market has led many car
owners to use a 50 percent hydrated alcohol
and 50 percent gasoline blend ("rabo de
galo"), thus increasing total alcohol
demand. Alcohol stocks are likely to be
notably low by the end of the marketing
year despite the initial projection of
rebuilding alcohol stocks.
In spite of the expected higher sugar
supply, sugar prices in the domestic market
have remained stable even during the peak
of the crushing season. Sugar and alcohol
prices are not balanced and sugar prices
for the domestic market have an advantage
over sugar for export prices and alcohol
prices for the domestic market. Alcohol
prices are somewhat depressed and the
market should correct the price distortion
in the short term. According to a study
conducted by Datagrow, a consulting company
working in the sugar-alcohol business,
prices by the end of August were R 22,46
per 50 kg of sugar for the domestic market,
R 565,00 per liter of anhydrous alcohol,
and R 465,00 per liter of hydrated alcohol.
Using sugar export prices (US$ 5.98 cents
per pound at the end of August) as a basis
for comparison results in the following
price equivalence: US$ 6.46 for sugar
for the domestic market; US$ 5.17 for
anhydrous alcohol and US$ 4.59 for hydrated
alcohol. The price equivalences indicated
that sugar for the domestic market is
clearly preferable (+8 percent compared
to sugar export prices), followed by anhydrous
alcohol (-13.5 percent) and hydrated alcohol
(-23.2 percent).
Total Brazilian sugar exports for 2001/02
have been adjusted upward to 11.6 million
tons, raw value, up 0.25 million tons
to reflect updated information from the
Brazilian Department of Foreign Trade
(SECEX). Brazilian sugar for 2002/03 exports
are revised downward to 13.1 million tons,
raw value, a 3 percent decrease from previous
figure, but up 13 percent relative to
2001/02 to reflect the new sugar production
estimate as well as to balance sugar and
alcohol demands in the domestic market.
Contrary to market expectations, sugar
prices in the international market did
not drop sharply as a result of higher
Brazilian export volumes. The steady depreciation
of local currency, the Real, has contributed
to increased exports.
