Jordan buys 25,000 t Ukrainian wheat
Amman, June 26, 2008
Jordan bought 25,000 tonnes of Ukrainian wheat at $377 per tonne c&f for September 1-15 shipment, a Jordanian government grain official said on Wednesday.
The grain was purchased from Ukrainian firm Nibulon, said the official, adding their offer was the by far the lowest among several major trading firms including Glencore and Louis Dreyfus.
Most of the offers ranged between $390 and $401 per tonne c&f in the tender to buy 100,000 tonnes of hard wheat of optional origin with a bidding deadline of June 25.
Jordanian officials say the drop in global wheat prices from their peaks since mid-March will encourage the kingdom to step up purchases in coming weeks if the bearish market persists.
Officials privately told Reuters Wednesday's tender committee decided not to buy further quantities at higher prices offered on hopes the market would fall further next week.
"We will repeat the tender next week and see what prices we can get as the market looks towards falling with expectation of a large world wheat crop," one official said.
They informed bidding companies on Wednesday they plan to issue another wheat tender as early as next week.
Officials say new purchases would have the goal of maintaining a comfortable six-month supply level of around 360,000 tonnes. Jordan's monthly consumption of wheat is between 58,000 to 60,000 tonnes.
Jordan's purchases of US wheat fell last year with Russia, Ukraine, Kazakhstan and Syria emerging as the main suppliers as their prices were the most competitive, officials say.-Reuters