paris / hamburg / reuters
Iran’s state grains agency has discreetly snapped up around one million tonnes of milling wheat, largely from Europe, in a two week span last month.
The country, previously a wheat exporter, has been hampered by Western sanctions over its nuclear program. But the wheat purchase demonstrates an ability to import food despite financial sanctions that make it difficult for importers to obtain letters of credit or transfer funds through banks.
“They are buying bigger volumes than what was expected, they have big needs,” said one trader.
“They have been taking almost anything that is available.”
A fair chunk of the milling wheat may end up as feed.
“They don’t have enough feed for animals, which means they are using milling wheat instead,” said another trade source.