Lowest price offered in Turkey TMO milling wheat tender $238.00/T: traders

HAMBURG: The lowest price in the first round of offers in tenders from Turkey's state grain board TMO to buy 290,000 tonnes of milling wheat on Thursday was $238.00 a tonne c&f, traders said.

No purchase has yet been made of the high-protein red wheat sought and talks continue, they said.

The TMO traditionally conducts several rounds of negotiation in its tenders, seeking lower prices than initial offers. Any final purchase may be at a lower price, traders said.

The lowest offer was for 10,000 tonnes for shipment to the Turkish port of Tekirdag.

This was followed by offers of $238.80 a tonne c&f for shipment to the port of Trabzon, and $239.80 a tonne c&f to Mersin, Samsun and Bandirma. Offers to other ports were over $240 a tonne, traders said.

Twenty-nine separate tenders each seeking 10,000 tonnes of wheat have been issued by the TMO. The TMO reserves the right to buy up to 20 percent more or less than the tender volume at its own discretion, they said.

The wheat is sought for shipment between March 21 and April 5. It must be unloaded at eight separate Turkish ports.

Traders said the weakness of the Turkish lira in recent months had made Turkey's wheat flour exports attractive to buyers, generating more imports to keep local supplies ample.

Turkey's currency has been relatively stable in recent weeks compared to the sharp volatility of last year, when it lost nearly 30 percent against the dollar.