Chicago Board of Trade wheat prices rally as MMTC places order for 342,000 tonnes

Mumbai: Wheat futures on the Chicago Board of Trade (CBOT) rose more than one per cent after MMTC placed an order to import 342,000 tonnes of wheat against a tender.
CBOT December wheat in electronic trade was up 9 cents to $8.12 per bushel by 0542 GMT, after hitting $8.15.

India''s state-owned trading firm MMTC Ltd has placed an order to import 342,000 tonnes of wheat against a tender, a company official said.

Global trading firms Cargill and Glencore will supply the contracted wheat at a weighted average price of $400 per tonne, reports quoting an unidentified MMTC official said.

The wheat will be delivered at Mundra and Kandla ports by February 10, the official said.

MMTC`s wheat tender on behalf of the government attracted bids from eight suppliers who have offered an aggregate quantity of 1.06 million tonnes at prices ranging from $397.03 to $487.95 a tonne, cost & freight (c&f).

The lowest bid of $397.03 a tonne for the tender was made by Cargill, which offered to deliver 65,000 tonnes at Mundra port for this rate.

The US-based commodity giant also offered 35,000 tonnes at 403.89 a tonne for Mumbai, 45,000 tonnes at $408.43 a tonne for Kandla, and 50,000 tons at $412.98 for Kakinada.

In terms of volumes, the highest quantum of 3.60 lakh tonnes for Kandla delivery at $410.50 a tonne was offered by Glencore International AG. The Swiss trader also quoted a rate of $407 a tonne for 3.25 lakh tonnes at Mundra and $422 a tonne for 3.5 lakh tonnes at Kakinada.

Besides Cargill and Glencore, others who bid included AWB of Australia, Concordia Agritrading (a subsidiary of the Dutch trading house, Nidera), Alfred C. Toepfer of Germany, Starcom Resources of Singapore, Ameropa AG of Switzerland, and Russia`s Rias Trading.