Ethiopia wheat order stirs import market

Ethiopia is seeking a million tonnes of wheat in one of the biggest import tenders for the food staple in recent years as it grapples with poor local harvests linked to the El Niño weather pattern, European traders said.

There was scepticism in the market, however, about the landlocked country’s logistical capacity to take such a massive tonnage, equivalent to what it typically imports during a year.

The tender calls for offers of optional-origin wheat including freight costs. Shipment is due within four months of any purchase, with the first expected this week.

“The big issue is logistics,” one trader said. “It’s hard to say how the tender is going to turn out.”

Ethiopia, with a population of 95 million, wants the wheat to be shipped to neighbouring Djibouti, the port that handles most Ethiopian imports.

— Reuters