Iran made a large purchase of Russian wheat

A very large volume of Russian wheat was purchased during a tender held by Iran’s State Trading Corporation (GTC) in August, Reuters reports.

According to one European trader, “Iran’s purchase volume appears to be much larger than initially estimated. However, the total volume is still a matter of debate, and there is a lot of disagreement in the market.” Current market estimates range from 500,000 tonnes to 1 million metric tons, with some reaching as high as 2.2 million tonnes.

Most of this volume is expected to come from Russia. One trader stated that Iran is expecting delivery in September-December. “But September is almost over, and I only see two vessels in Russia for Iran, so that’s likely at the higher end of the forecast.” “But even if the 1 million tonne figure were correct, it would still be a mistake.”

Wheat purchase prices ranged from €270 to €300 (US$318 to US$341.56) per tonne on a cash-and-frozen basis. Iran traditionally refuses to buy grain for US dollars.

The ongoing dry weather in Iran has led traders to expect an even greater increase in demand for imported wheat.

Tags: Iran, Russia, tender, wheat