Ethiopia bought 600,000 tonnes wheat in tenders

• The purchases involved 400,000 tonnes of wheat in a tender which closed on April 29 and 200,000 tonnes which closed on April 30.
• Traders said the 400,000 tonne purchase was believed to have been made from the trading companies Martina Mertens and Olam International.
• Ethiopia is still struggling with the impact of drought which has devastated farms in some regions.

The purchases involved 400,000 tonnes of wheat in a tender which closed on April 29 and 200,000 tonnes which closed on April 30.

Traders said the 400,000 tonne purchase was believed to have been made from the trading companies Martina Mertens and Olam International.

Detailed prices paid were not available. But traders said Mertens had offered Russian wheat in the tender at the lowest price of $215.64 a tonne FOB or $258.15 a tonne c&f including 180 days credit financing for delayed payment and shipment costs.

Olam was said to had offered Ukrainian wheat at $206.95 a tonne FOB, or $251.70 a tonne c&f including 180 days credit financing and shipment costs.

The 200,000 tonne purchase was believed to have been made from trading house Gemcorp.

Final prices were also unavailable but Gemcorp was believed to have offered $198.00 tonne FOB plus $6.42 a tonne credit financing for a 180 day payment delay for 100,000 tonnes and $196.00 a tonne plus $6.33 a tonne credit financing for the other 100,000 tonnes.

Shipment for the 600,000 tonnes is two months after opening of a letter of credit for the purchase.

Ethiopia is still struggling with the impact of drought which has devastated farms in some regions.

Crops in Ethiopia and elsewhere in East Africa are also suffering from swarms of locusts.