Wheat Tender Result

PEC / KRISHNAPATNAM – 70,000 MT

-                      AMIRA FOODS  - 70 K  284.70

-                      AGRI COMMODITIES – 30 K 289.90

-                      CARGILL – 30 K 279.75

-                      VITOL – 30 K 273.10

MMTC/KAKINADA  - 60,000 MT

-          AL GHURAIR               -           284.70 – 30 K/ 277 – 25k

-          AVANTI                       -           272.09  - 25 K

-          AGROCORP                 -           285.95  - 50 K

-          EMMSONS                  -           277.40  - 30 K

-          TOEPHER                     -           260.00  - 60 K

-          CARGILL                      -           280.00 – 40 K/282.75 – 30 K

-          STARCOM                   -           268.00 – 25 K

STC/MUNDRA  - 120,000 MT

-          AMIRA                         -           282.00 -  30 K 

-          AGROCORP                 -           280.00 -  50 K

-          LOUIS DREFUS             -           278.28 -  30 K

-          EMMSONS                  -           278.01 -  30 K

-          AGRI COMMODITIES  -           286.20 -  30 K

-          AL GHURAIR               -           285.85 -  30 K

-          PROMISING INTL.        -           279.75 -  30 K

PEC/KANDLA  - 90,000 MT

-          CARGILL                      -           280.00  – 40 K

-          LOUIS DREFUS             -           276.12  - 30  K

-          CONCORDIA                -           280.26  - 30 K

-          AL GHURAIR               -           284.70  - 30 K

-          EMMSONS                  -           278.01  - 40 K

-          STARCOM                   -           268.00  - 30 K

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.

Read Full reports at our Website .. www. FeedGrainAgri.com

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Pankaj Katba

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STC is offering 120,000 tonnes on India’s west coast, MMTC 60,000 tonnes on the east coast, while PEC is offering a total of 160,000 tonnes on both the coasts.

The bids for first tender following lowering of base price for export of 2 million tonne (mt) of wheat from Food Corporation of India (FCI) stock will be opened on November 18.

Sources said state-owned trading agencies, MMTC, PEC and STC, have invited bids for 3.4 lakh tonne of wh-eat to be exported from Mudra, Kandla, Krishnapatnam and Kakinada ports. An empowered committee, headed by the commerce secretary, will approve the successful bidders.

This is the second attempt by the government to export wheat from its stock this fiscal after the first bids were rejected because of lower price last month. The state-owned trading firms had floated tenders for export of 1.5 lakh tonne of wheat. But the bids were subsequently scrapped because government agencies got a highest quote of only $269 per tonne against the base price of $300 per tonne.

FCI can export 2 mt of wheat till June 31, 2014, instead of March 31, 2014.

As reported by FE earlier, the food ministry had sent a proposal to the government again, requesting reduction in base price for wheat shipments to $260 per tonne, which was later approved by the Cabinet Committee on Economic Affairs. “As global prices have firmed up in recent weeks, we expect bids more than the base price for wheat exports,” a food ministry official said.

Meanwhile, higher wheat output this year in key exporting countries such as Russia, Australia, Canada and France, has pulled down the global wheat price to $260- $ 275 per tonne from $310- $ 330 per tonne last year.

Last year, due to global shortage, FCI had exported 4.5 mt of wheat and realised R7,000 crore at an average price of about $ 310 per tonne.

Indian Wheat Tender State Trading Corp, MMTC Ltd and PEC Ltd will now close the bid on 18 November instead of 15 November.

India’s three state-owned traders have deferred the closing date for bids to export a total of 340,000 tonnes of wheat from government warehouses for shipment by December due to a public holiday, traders said on Tuesday.

State Trading Corp, MMTC Ltd and PEC Ltd will now close the bid on 18 November instead of 15 November.

The companies are offering the quantity at a floor price of $240 per tonne as part of the latest round of global export tenders.

STC is offering 120,000 tonnes on India’s west coast, MMTC 60,000 tonnes on the east coast, while PEC is offering a total of 160,000 tonnes on both the coasts.

Asia Grains-Australian wheat prices rise, market eyes Indian supply

* Australian wheat up $12/T for Dec shipment

* Frost damage in Australia's eastern grain belt

* Market eyes Indian wheat on talk of lower prices

By Pankaj Katba

Australian wheat prices firmed this week as frost damage to east coast crops fed supply worries, while Asian millers are likely to snap up wheat cargoes from India, as it moves to cut prices.

Australian prime wheat prices rose $12 a tonne to $297 free on board for December shipment and Australian prime hard wheat with 13 percent protein gained $10 a tonne to $355. Australian standard wheat was quoted at $291 a tonne FOB.

"There was some damage to wheat in New South Wales and Victoria because of the frost," said one Sydney-based trader. "We are seeing prices in Australia move higher even though the global market has eased."

Australia has kicked off an early harvest in Queensland and New South Wales, with farmers reporting higher protein in grain but lower yields due to hot weather, traders said.

More than half the wheat harvested in Queensland is of the prime hard variety with protein content exceeding 13 percent.

Besides frost damage, Australia's wheat crop faces a threat from hot and dry weather.

Most of Australia is forecast to experience hotter and drier conditions than normal over the next three months, the weather bureau said on Wednesday.

Chicago Board of Trade front-month wheat has given up 1.2 percent this week, weighed down by expectations of growing competition from Indian wheat supplies in the global market.

INDIAN WHEAT

India's cabinet will soon consider a 13 percent cut in the floor price for wheat exports, two government sources said on Thursday, potentially boosting supplies from the world's second-biggest producer.

Buyers are likely to bid heavily for tenders called by India's state-run trading companies.

"Buyers will bid for Indian wheat at around $280 to $282 a tonne FoB, going by current prices," said a trader in Singapore.

The State Trading Corporation of India issued a global tender to export 120,000 tonnes of wheat from the west coast, while PEC floated two tenders offering a total 160,000 tonnes from both east and west coasts.

"There will be good demand for Indian wheat in Southeast Asia and the Middle East for lower-grade milling and feed," a second Singapore-based trader said. "It will be a relief for millers as global supplies are getting tighter."

CBOT wheat hit a four-month high of $7.11-1/4 a bushel on Monday, fuelled by concerns that harsh weather in Argentina, Australia and the Black Sea could damage crop prospects and boost export deals for the United States.

Black Sea wheat was offered around $320 a tonne, including cost and freight, to Southeast Asia, unchanged from last week.

"Supplies from Russia and Ukraine are getting tighter as farmers have slowed selling," said the first Singapore trader.

South Korean flour millers bought 25,500 tonnes of Canadian milling wheat and a combined 54,600 tonnes of U.S. milling wheat via tenders that closed on Wednesday.

In the feed grain market, the Korea Corn Processing Industry Association bought 55,000 tonnes of corn in a private deal this week after having rejected all offers in an international tender for the same volume.

The food-grade corn, which can be sourced optionally from the United States or Brazil, was bought from Cargill at $254.70 a tonne C&F.

Indian Wheat Exports Seen at Record on Government Price Cut

Wheat shipments from India, the second-largest grower, may climb to a record as the government cuts the price for overseas sales, adding to supplies in a year when farmers are reaping the biggest global harvest ever.

Shipments are set to jump 32 percent to 7 million metric tons in the 12 months starting April 1 from 5.3 million tons a year earlier, said Agrocorp International Pte, a Singapore-based trader. The cabinet today approved a cut in the minimum price to $260 a ton from $300 to reduce state reserves that are more than double normal needs, said Food Minister K.V. Thomas.

Futures in Chicago rebounded 6 percent since reaching a 14-month low in August on speculation dry weather in Argentina and rains in Russia would hurt crops, even as the U.S. government predicts the global harvest will jump 8.2 percent to 708.9 million tons. The rally could fade should India ship more wheat than expected, according to Rabobank International.

“Exports from India are likely to be bearish or put a cap on where wheat prices are able to rally to,” Graydon Chong, a grains and oilseeds analyst at Rabobank, said in a phone interview from Sydney yesterday. “It will relieve some of the pressure that we’re seeing build up in the wheat complex.”

Wheat declined 12 percent to $6.81 a bushel on the Chicago Board of Trade this year and reached a low of $6.355 on Aug. 14. Corn plunged 38 percent and the Standard & Poor’s GSCIindex of eight agricultural commodities fell 18 percent.

Black Sea

“It’s a good time for India to increase sales,” said Vijay Iyengar, managing director at Agrocorp, who has traded commodities for more than two decades. “India should seize the opportunity to export in a big way.”

Supplies from India compete with Black Sea milling wheat that contains 11.5 percent protein, said Tejinder Narang, an adviser with Emmsons International Ltd. (EMSI), a New Delhi-based exporter. Prices of this variety increased about 11 percent to as much as $277 a ton from $250 in August, while grain with 12.5 percent protein climbed 9.6 percent to $285, said Narang.

In Russia, planting of winter grain may be 4 million hectares (9.9 million acres) less than intended, with the most impact on wheat, Oil World said Oct. 15. The worst drought in 50 years in areas of Argentina, South America’s biggest exporter, resulted in “irreversible damage” to the crop, the Hamburg-based researcher said Oct. 22.

Wheat from India can fetch about $275 a ton free on board ship in Middle East, African and Asian markets and has a “natural geographical advantage” because of lower freight costs to those buyers, said Narang.

‘Bearish Risk’

Imports by China, the top consumer, may more than triple to 9.5 million tons and tie with Egyptas the world’s biggest, according to the U.S. Department of Agriculture. Buying by Brazil and China to replenish inventories helped spur a 3.7 percent advance in prices last month, the most since April.

The “bearish risk is if India tries to capture more market share by lowering the threshold for selling wheat,” Rabobank analysts including Luke Chandler wrote in a report e-mailed Oct. 25. Wheat will average $7 a bushel this quarter and $6.75 in the first three months of 2014, the bank estimates.

State stockpiles in India totaled 36.1 million tons at the start of this month compared with a normal requirement of 14 million tons, according to Food Corp. of India. The government buys about 30 percent of rice and wheat production from farmers at prices set by the state.

The harvest is estimated at 92.5 million tons in the year ended June, near the record 94.9 million tons a year earlier, according to the farm ministry. Shipments totaled 2.65 million tons between April 1 and Sept. 20 including 1.3 million tons from state reserves, government data show.