TMO wheat tender closes with cargoes booked in RUBLES. https://www.agricensus.com/

The Turkish Grain Board (TMO) has booked 252,000 mt of milling wheat from Russian suppliers, paying higher prices than the prevailing market rate and with some cargoes said to have been paid for with rubles rather than dollars, according to market sources Wednesday.

A total of 252,000 mt of 12.5% and 13.5% protein wheat had been sought, with destination prices for the former ranging from $232.90–244.50/mt for the lower specification wheat and $236.50–262.65/mt for the higher protein.

Given the volumes involved, persistent uncertainty over Russian export limits and the run to secure supply, prices came in above where the Russian shallow water market currently sits.

Assuming current freight rates, the FOB Azov price for 12.5% protein wheat is around $204/mt and 13.5% protein is around $217/mt – about $10/mt higher than the equivalent Agricensus assessments.

An official announcement on the results from TMO was still pending at the time of writing.

RUBLE

Several of the cargoes were booked by Turkish buyers in rubles rather than dollars, most likely a reflection of the recent volatility emerging market currencies have experienced since the US started to raise interest rates.

The lira has been among the worst-performing currencies in the world in 2018, losing 39% of its value against the dollar since the start of the year.

While the lira has also lost 35% of its value against the ruble, a corporate debt crisis has exacerbated Turkey’s currency woes and has discouraged further dollar-denominated borrowing.