The Freeland File
Global Market Data
Tales from the Trail
Lucy P. Marcus
David Cay Johnston
The Great Debate
Jack & Suzy Welch
Macro & Markets
Lipper Awards 2012
Personal Finance Video
Our best photos from the last 24 hours. Full Article
Images of March
Human-made earthquakes reported in central U.S
17 Apr 2012
Angry North Korea threatens retaliation, nuclear test expected
More U.S. cities set to enter default danger zone
17 Apr 2012
Norway's mass killer demands acquittal or death
Special Report: Tax time pushes some Americans to take a hike
16 Apr 2012
Trayvon Martin’s killer showed signs of injury: neighbors
Obama paid 20.5 pct tax rate in 2011: White House
North Korea launches rocket amid international condemnation
Shuttle Discovery piggybacks over U.S. capital
Tue, Apr 17 2012
Police run over citizens during Peru protest
Tue, Apr 17 2012
Norway killer calls attack "sophisticated and spectacular"
Tue, Apr 17 2012
Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography. See more | Photo caption
Discovery's last flight
Space shuttle Discovery took off on its final voyage to the Smithsonian Museum. Slideshow
A look inside Syria as mass protests give way to rebellion. Slideshow
Iran starts feed grain imports as sanctions bite
UPDATE 2-Iran starts feed grain imports as sanctions bite
Iran says ready to resolve nuclear issues
Mon, Apr 16 2012
Iran, big powers agree - to keep talking
Sat, Apr 14 2012
Exclusive: Iran ships "off radar" as Tehran conceals oil sales
Fri, Apr 13 2012
Exclusive: Iran poised to start big feed grain imports
Thu, Apr 12 2012
Analysis & Opinion
Sanctions could cost Iran $50 bln
A woman walks past corn as she arrives at a holy shrine to attend a mass prayer ceremony before breaking her fast during the month of Ramadan in northern Tehran August 4, 2011.
Credit: Reuters/Morteza Nikoubazl
By Sarah McFarlane and Michael Hogan
Wed Apr 18, 2012 12:10pm EDT
LONDON (Reuters) - Iran's state feed agency SLAL is tendering to buy corn and soybean meal, European traders said on Wednesday, needed to feed the country's large livestock herds as private importers struggle with trade financing due to Western sanctions.
The purchase tender for 150,000 tones of corn and 100,000 tones of soybean meal grain sought shipment in May/June and the closing date for offers was said to be early next week, the traders added.
Other European traders later said SLAL had also bought a consignment of about 55,000 tones of Australian-origin feed wheat in the past few days, adding that a previous 55,000 tone consignment of optional-origin wheat was said to have been purchased by the state agency last week.
Western sanctions, aimed at Iran's disputed nuclear program, do not target food shipments, but financial measures have frozen Iranian firms out of much of the global banking system.
Sanctions are making it difficult for importers to obtain letters of credit or conduct international transfers of funds through banks.
"The state is being compelled to step in with feed purchases as the private sector feed wheat buying is still at very much below normal levels because of the financial disruption of the sanctions," a European trader said.
SLAL was expected to start buying hundreds of thousands of tones of feed grains, traders told Reuters last week.
The latest tender also reflects a shift in focus after state food agency GTC bought more than 2 million tones of milling wheat in March, building up stocks after private buyers were hit by the trade finance squeeze.
The Iranian government bought wheat on international markets at a frantic pace in March, snapping up 2.5 to 3 million tones of bread wheat, paying over international prices as private Iranian flour mills found they could not purchase in the face of toughened western sanctions.
"There are several hundred thousand tones of purchasing inquiries from private Iranian feed buyers in the market which are still open and basically being ignored," another trader said.
"I had a big feed wheat and corn inquiry this week offering payment in euros via a Swiss bank. But for me it was too risky and I left it."
A Swiss bank owned by India's Hinduja Group said this month it was continuing food trade finance with Iran despite the sanctions.
Some Iranian private feed grain shipments were continuing via the Caspian Sea with payment in advance, traders said.
Meanwhile, traders said the state food agency GTC is still checking milling wheat prices on a weekly basis and could yet make additional purchases of food wheat as well.
(Additional reporting by Michael Hogan in Hamburg; Editing by Veronica Brown and Keiron Henderson)
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Be the first to comment on reuters.com.
Add yours using the box above.
Back to top
New York Legal
Support & Contact
Connect with Reuters
Our Flagship financial information platform incorporating Reuters Insider
An ultra-low latency infrastructure for electronic trading and data distribution
A connected approach to governance, risk and compliance
Our next generation legal research platform
Our global tax workstation
About Thomson Reuters
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.