Iran’s GTC bought about 500,000 T wheat in tender this week - traders

2 minute read
Register now for FREE unlimited access to

HAMBURG, Dec 16 (Reuters) - Iranian state agency the Government Trading Corporation (GTC) is believed to have purchased around 500,000 tonnes of milling wheat in a tender that closed on Wednesday, European traders said on Thursday.

It was believed to have been bought in eight consignments of around or just over 60,000 tonnes for shipment to Iranian ports in the Middle East Gulf.

Prices were estimated at around 365 euros and 368 euros ($413.5 to $416.9). Iran traditionally buys grains in euros rather than U.S. dollars.

Register now for FREE unlimited access to

Shipment of the wheat was sought in January and February, 2022.

Possible origins of the wheat purchased were thought to be Russia, Germany and the Baltic Sea region, traders said.

The tender had sought 180,000 tonnes including some to be shipped via the Caspian Sea and for land transport by railway. Volumes in Iran’s tenders are nominal and the country regularly buys more than the original tonnage sought.

A small volume was also thought to have been purchased for Caspian Sea shipment. The result of the land transport tender was not known by traders.

“It is a hefty purchase but Iran does need a lot of wheat,” one European trader said.

Iran needs to import around eight million tonnes of wheat after its crop this summer was damaged by the worst drought in 50 years, Reuters reported in October.

But western sanctions on Iran continue to make payment difficult, traders said.

Iran said on Nov. 19 it had imported four million tonnes of wheat since late April. read more

($1 = 0.8827 euros)

Register now for FREE unlimited access to
Reporting by Michael Hogan, editing by Kirsten Donovan

Our Standards: The Thomson Reuters Trust Principles.