Iranian state-owned animal feed importer SLAL has purchased about 200,000 tonnes of corn, some 200,000 tonnes of barley and 200,000 tonnes of soyameal in international tenders, European traders said on Wednesday. Tenders for the same volume had closed on Tuesday. The exact tonnage bought was unclear but was said to be close to the volumes sought in the tenders.
"I think the purchases show there is confidence among grain export houses that Iran will be able to make payments despite the problem with sanctions," a European trader said. "Trade finance for Iranian food and animal feed transactions is being made available by banks including in Turkey."
The purchases were spread among a series of trading companies. Several multinational commodity houses refrained from participating in the tenders, however, because of US sanctions against Iran. The sanctions are making it difficult to obtain trade finance for grain deals, traders said.
Under the sanctions, reimposed by Washington last year over Iran's nuclear programme, the Islamic republic is blocked from the global financial system. Food, medicine and other humanitarian supplies including animal feeds are exempt. Traders said ships carrying Iran's animal feed imports had been unloading in recent weeks after payments were made.
Indian traders won deals to export raw sugar to Iran for March and April delivery, traders said in February. In its last tender reported on Jan. 23, SLAL bought about 60,000 tonnes of corn and about 60,000 tonnes of barley. The grains in SLAL's tender this week were sought for shipment in April, May and June.
The corn purchased is expected to be sourced from the Black Sea region, the barley from the Black Sea and elsewhere in Europe and the soyameal from South America, probably Argentina or Brazil.
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