February 20, 2012

Turkey to sell 200,000 tonnes of wheat, barley

Turkey's state grain agency TMO seeks to sell 200,000 tonnes of wheat and barley in a tender, with the bidding deadline set at February 28, sources said Friday (Feb 17).

The agency is offering to sell up to 35,000 tonnes of white milling wheat, 65,000 tonnes of red milling wheat and 100,000 tonnes of white feed barley, traders said.

Only foreign companies will be able to participate in the tender. The grain is from Turkey's 2009-2010 crop year. It should be loaded in Turkish ports within March 15-May 4.

Turkey is alternately a grain importer or exporter according to the size of its harvest.

Turkey had been a major wheat importer in 2011.

"The country had an excellent crop in 2011 and appears to be taking the opportunity to sell off old stocks as competition from the Black Sea fades," one European trader said. "In past months it would have had little chance of success against Russia and Ukraine."

Following a massive surge in exports in late 2011, rising prices have pushed Russian wheat out of the lead in recent major grain purchase tenders. Ukraine's high exports and possible winter crop damage means a limit on overseas grain sales is expected by some observers but denied by the government.

The country's new harvest is also very close and space needs to be cleared in grain storage silos, another trader said.