Turkey widens wheat tender terms as prices keep rising

Turkey’s state grain importer again widened the terms of an upcoming wheat tender, its second change to the terms...

Turkey’s state grain importer again widened the terms of an upcoming wheat tender, its second change to the terms of a 400,000 mt deal which is expected to close Friday, as cash prices on the Black Sea continue to rise.

The Turkish Grain Board (TMO) on Wednesday told traders it would permit white wheat to be loaded in an optional origin tender, expanding the list of potential origins for cargoes to be lifted from to include suppliers such as Argentina, Australia, India, and parts of the US and Canada.

TMO’s wheat import tenders typically stipulate for red wheat to be loaded from the Black Sea, the EU, or the UK.

Wednesday’s move comes after TMO had already postponed the tender’s closing and shipment dates after bad weather across Turkey disrupted travel.

The tender is now set to close Friday with shipment for January 26-February 25.

Wheat prices in Turkey have followed the global market higher, spurred on to multi-year highs after Russia increased export duties to slow its grain sales pace.

The best-priced offers for Russian February loading 12.5% milling wheat have increased $15/mt over the past week to $295/mt CIF Marmara against bids at $288/mt.

A deal was booked for February 12.5% at $292/mt CIF Marmara on Wednesday, the highest level since Agricensus started tracking Black Sea prices in 2017.

What to read next
Fastmarkets has corrected the rationale for its MB-MNO-0002 manganese ore semi carbonate index, 36.5% Mn, fob Port Elizabeth, which was published incorrectly on Friday June 5 due to incorrect source data.
EU wheat exports reached 19.23 million tonnes as of May 31, according to European Commission data, yet weekly flow data from Rouen port collapsed 66.6% to 72,923 tonnes in the week to June 3, pointing to a sharp deceleration in physical trade.
Fastmarkets’ weekly recap of the main movements in global cash markets.
A surplus in bleached softwood kraft (BSK) pulp has driven US prices down by $20 per tonne, while bleached hardwood kraft (BHK) prices rose by $50 per tonne.
Fastmarkets has launched two daily Carbon Border Adjustment Mechanism (CBAM) certificate prices on Thursday June 4.
US wheat futures and Euronext contracts closed lower on Friday May 29, pressured by technical selling and weakness in crude oil markets. In global cash markets, activity was subdued heading into the weekend, with limited fresh business reported and most prices remaining unchanged.