Tender Result : Indian Government Milling wheat Exports Tender result

Key Points: 

1. Wheat exports tender gets bids higher than floor price

2. India's PEC gets highest bid at $290/T in wheat export tender

Reports By: Pankaj Katba Feed Grain Agri Brokers 

Buyers in Singapore and Dubai have placed the highest bids for export of Indian wheat through State agencies — STC, MMTC and PEC Ltd — for which tenders were opened on Monday.

At the top-end, bids received by these agencies ranged from $284.70-289.90 a tonne, broadly in line with the prevailing global prices, which have increased in the last three weeks.

PEC Ltd received the highest bid of $289.90 a tonne from the Singapore-based Agri Commodities International for about 30,000 tonnes of the 70,000 tonnes wheat offered from Krishnapatnam port.

MMTC received highest bid of $285.95 a tonne for 50,000 tonnes of the 60,000 tonnes offered from Kakinada Port by Agrocorp International Pte Ltd, another Singapore-based firm.

Agri Commodities was also the highest bidder at $286.20 a tonne for 30,000 tonnes of the 1.2 lakh tonnes offered by STC through Mundra Port.

BIDS FROM DUBAI

The Dubai-based Al Ghurair had placed a highest bid of $284.70 for 30,000 tonnes of the 90,000 tonnes offered through Kandla Port.

The responses to the latest tenders are higher than the floor price of $260 a tonne. On October 30, the Government had cut the floor price for wheat exports by $40 a tonne to $260 to make Indian wheat shipments more viable in the global market after the State entities received poor response to export 1.6 lakh tonnes last month. Against a floor price of $300 a tonne, the bids received by these entities for the October tender ranged between $260 and $267 a tonne, forcing the Government to cut the price.

“It is interesting that the large and medium-sized traders in Singapore and Dubai have made the highest bids. May be they are taking new positions,” said Tejinder Narang, a grains trade analyst. Further, none of the multinationals, such as Cargill and Louis Dreyfus, submitted bids at the highest levels.

Narang also pointed out that the Indian wheat has come at a par with supplies from the Black Sea region, where it is quoted between $280 and $290 a tonne.

The Government has decided to ship out about two million tonnes of wheat to cut surplus stocks and create space for other cereals such as rice, for which paddy procurement is currently on in states such as Punjab and Haryana. On November 1, India’s wheat stocks stood at 34 million tonnes, three times more than the target for the October-December quarter.

The State entities had exported 4.2 mt of wheat in fiscal 2012-13 and the value of these shipments was $1.4 billion. The average price fetched by the Indian wheat stood at $311.38 a tonne last fiscal.

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Thanks & Best Regards
Pankaj Katba

Feed Grain Agri Brokers 

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