December 4, 2007

 

India's wheat tender gets bids in $395.88-$483/tonne range
 

 

Indian state-run trading company PEC Ltd. received bids in the range of US$395.88-US$483 a tonne for its latest wheat tender, a senior company official said on Monday (December 3, 2007).

 

The tender is part of India's plan to import 1 million tonnes of wheat percent2c+wheat) by March 2008.

 

"The highest bid has been received from Starcom for US$483/tonne and the lowest price has been quoted by JK International," said the official.

 

Global trading companies Glencore International AG and Australia's J.K International have emerged as frontrunners for the bid. In addition, four other trading companies have bided for PEC's tender, and none were rejected.

 

Of the six bidders, J.K. International has offered the highest volume at around 250,000 tonnes, said an official of one of the trading firms that participated in the tender.

 

Cargill Inc has offered the next biggest volume of 110,000 tonnes of wheat. Its offer at Mundra port was valued at around US$433.2/tonne, while the company's bids at other ports were also priced at around US$433/tonne, he said.

 

Glencore had offered wheat at prices ranging between US$433.5/tonne to US$479/tonne depending upon the port of delivery and the quantity offered. Its offer at Mundra was priced at US$433.5/tonne.

 

The executive said Hamburg-based A C Toepfer has offered around 65,000 tonnes of wheat and its bid at Mundra port is around US$442.51/tonne.

 

The tender documents showed that JK International offered the highest quantity of wheat at 250,000 tonnes.

 

PEC received bids for a total 630,000 tonnes of wheat.