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Jordan has enough wheat stocks for 6 months

Amman, August 10, 2010

Jordan has enough wheat stocks to cover its needs for another six months but a Russian export ban will force it to switch to more expensive US or Europe grains to maintain its stockpile, a grain official said on Tuesday.

The official, who requested anonymity, told Reuters the kingdom, facing higher import bills due to a surge in global grain prices, had around 350,000 tonnes of Black Sea-origin wheat to cover almost six months of supply.

But the Russian export ban due to drought will force the kingdom to seek alternative sources to its traditional Russian and Ukrainian suppliers in next Thursday's tender for 100,000 tonnes of wheat, the official said.

Before the drought, wheat from the Black Sea region, especially from Russia and Ukraine, was offered at aggressive prices in key Middle East markets. 

Jordan sought bids for US hard red winter wheat No 2 or its equivalent, with a preference for German origin, the official added.

"Jordanian specifications are based on US hard red winter wheat No 2 so anything that is identical is suitable, in any case the bulk of Jordan's wheat purchases until five years ago were mainly American wheat," said one trader.

The kingdom took a decision to build stocks in 2008 after world grain prices surged.
 Last year, it raised reserves to record levels in an aggressive buying spree, but in recent months it has held back in hopes prices would fall.

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




Tags: Jordan | wheat | Food stocks |

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