Iran sought 900,000 T corn, barley soymeal this week

PARIS/HAMBURG: Iranian state-owned animal feed importer SLAL this week held international tenders to buy 300,000 tonnes of feed barley, 300,000 tonnes of corn and 300,000 tonnes of soymeal but no purchases were believed to have been made, European traders said on Wednesday.

The tenders were said to have closed on Tuesday.

But sanctions on Iran is making trade finance difficult and participation was thin, they said.

"I do not think any purchases were made, the trade finance is hard to arrange," a trader said.

Food, medicine and other humanitarian supplies are exempt from sanctions Washington reimposed in 2018 over Iran's disputed nuclear programme. But trading houses are still finding it difficult to sell food and other agricultural products.

The U.S. measures targeting everything from oil sales to shipping and financial activities have deterred many foreign banks from undertaking Iranian business, including food and agricultural deals. Many smaller banks that had dealt with Iran under a previous round of sanctions have also stopped dealings this time.

The tenders from SLAL this week had sought shipment in February and March. Yellow corn was sought.

"I think some offers were submitted for the corn but they were regarded as too high," a trader said. "I do not think any offers were submitted for the soymeal or barley."

"The banking channels for Iran are extremely difficult so I doubt whether anyone would be able to sell at the moment."

SLAL had also tendered for 200,000 tonnes of barley in November when sanctions were also said to have hindered a purchase.