Ethiopia buys 800,000 tonnes of wheat

The Ethiopian government has purchased about 800,000 tonnes of milling wheat of optional origin in a giant international tender for up to 1 million tonnes, European traders said on Tuesday. Offers in the tender had been submitted on October 23. Negotiations are continuing and more sales are possible, the traders added.
The purchase involved about 150,000 tonnes at around $233 a tonne, 80,000 tonnes at around $234, 300,000 tonnes at about $243 and 176,000 tonnes at $241.86, all on a c&f basis. About 100,000 tonnes was also believed to have been purchased at $243-$244 a tonne c&f. Origin of the grain was optional but could include wheat from the Black Sea and Baltic Sea regions, the traders said. The sales were largely made by small to mid-size trading houses, including some from the Middle East and Black Sea regions.
Talks about the remaining 200,000 tonnes in the tender continue, with suppliers being asked to accept $243 a tonne c&f, traders said. This is one of the largest wheat tenders in the global grains market in recent years and comes as Ethiopia faces poor local harvests linked to the disruptive El Nino weather pattern. Shipment of the wheat is due within four months of the purchase being completed.