Jordan Launches New Wheat Tender Amid Ongoing Grain Purchases
- 16-Jan-2025 11:25 AM
- Journalist: Peter Schmidt
Jordan’s state grain buyer has announced a new international tender for up to 120,000 tonnes of milling wheat, reinforcing the country’s ongoing efforts to secure sufficient wheat supplies. The tender, which will close on January 21, invites offers from suppliers globally, with the possibility of sourcing wheat from optional origins. This move comes on the heels of Jordan’s previous tender earlier this week, in which the country successfully purchased 60,000 tonnes of wheat.
This new round of procurement is expected to see shipments of wheat in different consignments, ranging from 50,000 to 60,000 tonnes, and it will cover potential shipment windows between April and May. The shipment dates are flexible, with options for deliveries during April 1-15, April 16-30, May 1-15, and May 16-31. These delivery windows will provide suppliers with flexibility to meet Jordan’s import requirements in a timely manner.
The announcement of the wheat tender reflects Jordan’s growing demand for milling wheat, which is a staple in the country’s food security strategy. Jordan is heavily reliant on wheat imports to meet the domestic demand for bread and other staple food products. In addition to the wheat tender, a separate tender for up to 120,000 tonnes of animal feed barley will also close on Wednesday, further indicating Jordan’s commitment to securing its grain supply chain amidst rising global demand.
Traders have already begun to speculate on the pricing dynamics of this latest wheat tender. According to media reports, previous offers have varied significantly. In the recent tender, grain trading house CHS won the bid for 60,000 tonnes of wheat, with a price of around $267.60 per tonne, cost and freight (c&f), for shipment in the second half of March. Other offers from major trading houses ranged from $269.94 to $300 per tonne, highlighting the competitive nature of the global grain market.
While the pricing for the current tender remains to be seen, it is expected that the costs for future wheat shipments to Jordan may rise due to factors such as tighter global wheat supplies and increasing freight costs. Traders anticipate higher prices as global wheat-producing regions face uncertainties related to weather conditions, geopolitical tensions, and fluctuating production outputs.
The tendering process for both wheat and barley also showcases the central role of international traders and commodity suppliers in meeting Jordan’s agricultural needs. Companies like Cargill, Viterra, Al Dahra, and others are actively involved in the bidding process, ensuring that Jordan can diversify its sources of grain imports and maintain a stable supply.
Jordan's strategic grain purchases are part of the broader efforts to strengthen food security in the region, especially as countries around the world grapple with climate-related disruptions and economic instability. As the deadline for offers approaches, traders will be keenly watching the outcome of this new tender, with prices and volumes likely to remain fluid in the coming days.