By Sameer C. Mohindru
SINGAPORE--Global commodities trading companies, Glencore
International PLC (GLNCY) and Concordia Agritrading Ltd. have
bought 100,000 metric tons each of Indian wheat from Government-run
State Trading Corp. of India Ltd. (512531.BY), trading executives
said Friday.
The deals were finalized at $310.21/ton, free-on-board for
shipment from the western port of Mundra by March 30, the
executives said.
Initially, the two companies had offered to buy 50,000 tons each
but they doubled the volume sought during negotiations, executives
familiar with the deals said.
Traders said at least one cargo of 35,000 tons will be shipped
to flour millers in the Middle East where Indian wheat is currently
offered around $340/ton, basis cost and freight.
Some volumes are expected to be shipped to Ethiopia where buyers
purchased at least 150,000 tons Indian wheat around $362/ton,
C&F.
Companies from Southeast Asia, the Middle East and Africa are
buying Indian wheat because drought has reduced supplies from
Russia, Australia and Ukraine. Winter wheat plantings in the U.S.,
the world's largest exporter, have also been affected by
drought.
India is selling surplus wheat stock via tenders to clear
storage space for the next crop, as harvest has already
started.
Small volumes of the new crop have started arriving in markets
of the western state of Gujarat. Exporters have purchased wheat
privately in advance and sold to buyers overseas for April and May
shipment at $305-$308/ton, free-on-board. Though production in
Gujarat is expected to be lower on year but such exports through
private buying will weigh on prices quoted in government's export
tenders in coming weeks.
Write to Sameer C. Mohindru at sameer.mohindru@dowjones.com
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