November 20, 2007

Glencore volume highest in India wheat tender 

Global trading companies Glencore and Cargill have emerged as frontrunners in an Indian tender to import wheat, issued by government-run trading company MMTC Ltd., trade executives said Monday (November 19, 2007).

MMTC received eight bids of which one was rejected on technical grounds.

Of the eight bidders, Glencore has offered the highest volume at around 360,000  tonnes, an official of one trading firm that participated in the tender said.

He said its bid for delivery at the western port of Mundra is around US$407/tonne, basis cost and freight. Its bids at other ports vary up to US$454/tonne.

Another trade executive said Australia's AWB, the largest supplier by volume in 2006, participated in the Indian government's wheat tender for the first time in 2007.

He said it offered around 95,000 tonnes wheat, but mostly of Black Sea origin.

Cargill has offered wheat at Mundra at around US$397/tonne, but the company's bids at other ports are priced around US$403-US$448/tonne, he said.

The executive said Hamburg-based A C Toepfer has offered around 190,000 tonnes of wheat and its bid at Mundra port is around US$413/tonne.

Officials of these bidders couldn't be immediately reached for comment.