January 12, 2009

Merrill Lynch has closed its European agricultural proprietary trading business, a source close to the matter said Friday (January 9).

The bank announced the decision internally Thursday, with immediate effect, and three staff lost their jobs in London as a result, said the source.

The agricultural desk traded futures and options in commodities including sugar, corn, wheat and oilseeds and began operations early in 2008.

The desk was closed as agricultural commodities "risk reward profile" was poor compared with that of oil or metals and the team was small, said the source.

Merrill Lynch was not immediately available for comment.