Glencore, Cargill win wheat contract

Glencore International AG and Cargill Inc won a contract to supply 342,500 metric tonnes of wheat to India at record prices as the world's second-biggest consumer of the grain replenishes its stockpiles.

MMTC Ltd, India's biggest state trading company, bought the wheat at an average $400.19 a tonne for delivery by February 10, said a government official, who didn't want to be identified. The nation paid $389.45 a tonne for 795,000 tonnes in September.

Wheat has soared 67 per cent in Chicago in the past year as buyers including Egypt, South Korea and Japan rush for supplies as global stockpiles are forecast to fall to the lowest in more than two decades.

India's demand may outstrip supply this year, forcing the country to pay more to build stocks, farm minister Sharad Pawar said in September.

Government-owned State Trading Corporation and PEC Ltd on November 21 called bids to buy a total 700,000 tonnes of wheat, part of a government plan to import 1 million tonnes through the three state trading firms including MMTC. The country purchased 1.3 million tonnes in July and August.

Glencore and Cargill were among seven suppliers competing for MMTC's contract. The government received bids for a total 1.06 million tonnes, three times the quantity sought, at between $397 a tonne and $487 a tonne. Glencore offered to supply 360,000 tonnes and Cargill 160,000 tonnes.

MMTC is seeking 65,000 tonnes at Mundra and 45,000 tonnes at Kandla on the country's west coast; 40,000 tonnes each at Chennai, Vishakhapatnam and Tuticorin and 50,000 tonnes at Kakinada, all in southern India. It is seeking 35,000 tonnes each at Cochin and Mumbai ports.