HAMBURG: 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 on Thursday.
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.
“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.
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