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Jordan buys 100,000 T German wheat

Amman, August 13, 2010

Jordan has bought a total of 100,000 tonnes of German origin wheat for shipping in September and October in the first purchase of non-Black Sea origin wheat in several years, a grains official said.

Jordan bought 50,000 tonnes at $324.75 per tonne for second-half September shipment and another 50,000 tonnes at $322.75 per tonne for Oct. 1 shipment, both cost and freight (C&F).

Traders said the following bids were made per tonne c&f: Glencore $339, Bunge $334, Louis Dreyfus $352 and Cargill $365.4.

Drought and a Russian export ban have forced Jordan to seek alternatives to its traditional Russian and Ukrainian suppliers. Before the drought, wheat from the Black Sea region was offered at aggressive prices in key Middle East markets.

The kingdom then bought Black Sea origin wheat at price levels averaging around $210 C&F per tonne.

This is Jordan's first purchase since August 4 when it bought 50,000 tonnes of Black Sea origin wheat for first-half September  in a deal that is now in jeopardy, with the supplier seeking force majeure.

Traders said Jordan could not take the risk of delaying purchases until prices ease, even though the bullish market will push its import bill up by at least $150 per tonne.

Freight from US ports will add an extra $50-$60 per tonne to delivery costs to Jordan's Red Sea port of Aqaba, almost double Black Sea levels, traders said.

Jordan's monthly consumption of wheat is between 50,000 and 60,000 tonnes, and the kingdom imports a similar quantity of barley.

Trade officials have said the goal is to maintain a comfortable six-month supply level of about 360,000 tonnes of wheat and a four-month supply of a similar amount of barley.-Reuters




Tags: Jordan | German wheat |

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