Jordan's state grain buyer has issued new international tenders to purchase 100,000 tonnes of hard milling wheat and 100,000 tonnes of animal feed barley both to be sourced from optional origins, European traders said on Thursday. Jordan has failed to make purchases in its last six wheat tenders. But traders said they expected more offers in the new wheat tender after changes in tender terms.
The Middle Eastern importer has had trouble importing wheat and barley since late 2015 after new terms on quality control and payment were introduced which reduced participation by international trading houses. Traders said heavy penalties had created too high a commercial risk to offering in tenders. "There have now been some changes in tender terms with decreased penalties regarding gluten and protein and also penalties for live insects being deleted," one trader said. "Different government agencies carry out purchasing and quality control and there was concern that cargoes could be rejected even if they fully comply with trade tender specifications." A government source said in April that changes to wheat purchasing terms were being considered.
Jordan has not held a successful wheat purchase tender since March 8 when it bought 100,000 tonnes from trading house Dolge. The deadline for the wheat tender is May 17 and for the barley tender May 18, they said. The new wheat tender sought shipment of 50,000 tonnes from October 1-15 and 50,000 tonnes from October 16-31, traders said. The barley tender sought shipment of 50,000 tonnes from October 16-31 and 50,000 tonnes from November 1-15, traders said.