Turkey said to cut wheat purchase to 285,000 tonnes on high prices – traders

Turkey’s state grain board TMO has informed traders it will cut its purchase of wheat in an international tender to about 285,000 tonnes from 370,000 tonnes provisionally awarded on Wednesday because of high prices, traders said.

The tonnages purchased in TMO’s tenders are always provisional and subject to final confirmation in the coming days. Purchases can be reduced or cancelled completely.

Chicago wheat extended its surge to set another 14-year high on Thursday, with prices rising over 25% in the past week as Russia’s invasion of Ukraine fanned fears of massive disruption to exports from the Black Sea region. GRA/

“Prices in the TMO tender shot up on Wednesday, obviously reflecting the current heated market, but the Ukraine crisis looks like creating very painful bills for wheat buyers,” one European trader said.

Both wheat imports and grain already in warehouses in Turkey could be offered in the TMO’s tender on Thursday for shipment/delivery between March 10 and April 8.

Traders said the tender was dominated by offers of wheat already in warehouses inside Turkey, with Ukrainian and Russian exports disrupted by the fighting in Ukraine.

Traders said the TMO indicated it will not confirm provisional purchases made on Wednesday of 75,000 tonnes priced at an estimated $464.90 and $470.00 a tonne delivered ex warehouses and $517.00 a tonne c&f offered for a new import consignment.

This left the highest price in the tender at an estimated $451.80 a tonne for 25,000 tonnes of 13.5% protein wheat already in warehouses in Turkey for delivery to the port of Tekirdag.

In its last purchase on Jan. 18, Turkey bought 335,000 tonnes at the highest price of $351.80 for 13.5% protein wheat also from warehouses in Turkey.

“The Ukraine crisis means tough times for grain buyers,” a trader added.
Source: Reuters (Reporting by Michael Hogan, editing by Aditya Soni)