Tunisia gets offers in wheat tender, Russian traders absent
The lowest price offered in the international tender from Tunisia’s state grains agency on Tuesday to purchase about 100,000 metric tons of soft wheat was believed to be $274.69 a ton c&f for optional-origin wheat, according to initial assessments from European traders.
The offer was said to have been submitted by trading house Casillo for 25,000 metric tons. Results are expected later on Tuesday.
Traders said participation was relatively thin with only five trading houses taking part and leading Russian grain export houses noticeably absent.
“It looks like it is too difficult for Russian companies to offer in international tenders against the background of the unofficial minimum Russian export price,” one trader said. “I think there are indications the floor price is being enforced more strongly.”
In Egypt’s wheattender on Sept 20, repeated offers for Russian wheat at $270 a ton were believed to have illustrated the Russian government’s current unofficial minimum export price in international tenders. Traders said they believe the floorprices being are imposed to brake exports and cool Russian domestic flour prices.
Tunisia’s wheat is sought in four 25,000 ton consignments for shipment between Oct. 5 and Nov. 15, depending on the origin the seller supplies.
The lowest offer for 50,000 tons of animal feed barley also sought in the tender was said to be $219.69 a ton c&f, also submitted by trading house Casillo.
The barley is sought in two 25,000 ton consignments for shipment between Oct. 5 and Nov. 5 also depending on origin supplied.
Tunisia has been regularly buying cereals in international markets in recent months after drought shrank the country’s grain harvest by 60% to 250,000 tonnes, creating an unwelcome additional import burden during the country’s current tight financial position.
Source: Reuters (Reporting by Michael Hogan, editing by Kirsten Donovan)
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