August 28, 2007

India eyes Australia wheat buys via recent tender
 

India may buy Australian-origin wheat at US$340-350/tonne on a cost-and-freight basis for shipment in December, a senior government official said Tuesday (Aug 28).

Last week, India's federal government issued a tender to import the wheat through State Trading Corp., which will see it shipped in containerised cargoes for the first time, instead of bulk shipments.

The tender has been issued at a time when Australia has deregulated its wheat exports in bags and containers.

"Availability of containers for global commodities trade is tight at the moment. Total volumes offered in containers may be limited, but the government is also banking on supply offers in bulk shipments," said the official.

The tender is first in a series where the government will consider buying between 100,000-300,000 tonnes but may purchase a higher volume based on trends in global prices, said the official.