By Reuters

Copyright brecorder

HAMBURG: Iranian state-owned animal feed importer SLAL is believed to have purchased animal feed corn in an international tender seeking around 120,000 metric tons which closed on Tuesday, European traders said on Wednesday.

The volume bought was not clear but some estimates were that around 180,000 tons in three consignments of about 60,000 tons were purchased.

The price was estimated at around 235 euros ($278.50) a ton. Iran traditionally declines to make grain purchases in U.S. dollars.

Reports reflect assessments from traders and further estimates of prices and volumes are still possible later.

Traders did not report purchases in other tenders on Tuesday from SLAL seeking up to 120,000 tons of feed barley and 120,000 tons of soymeal and traders said it is possible new tenders could be issued next week.

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The tender sought yellow corn sourced from Brazil, Europe, Russia, Ukraine or elsewhere in the Black Sea region. Shipment was sought in October and November.

Payment problems for Iranian businesses because of Western sanctions had made participation in recent tenders from Iran difficult, traders said.

Food is exempt from Western sanctions on Iran over its nuclear programme, but sanctions have hit the country’s financial system, creating complex and erratic payment arrangements.

Traders said Iran was offering immediate cash payment against documents in this week’s tenders via two banks, one in Iraq and one in Turkey.