- Partial fill: Jordan secured 60,000 tons of milling wheat, only half of the 120,000 tons originally tendered.
- Tight price spread: Winning and competing offers clustered between $276 and $282/MT C&F, reflecting a competitive global wheat market.
- Slightly bearish tone: Jordan’s decision to leave 50% uncovered may signal expectations of softer prices ahead, pressuring Black Sea exporters.
Jordan Wheat Tender Update
Jordan’s state grain buyer, the Ministry of Industry and Trade (MIT), purchased approximately 60,000 tons of random-origin milling wheat in an international tender held on June 2. The volume represents only 50% of the planned 120,000-ton procurement, leaving half of the tender unfilled.
Buildcom secured the award at $276 per metric ton C&F for shipment to Aqaba between August 16–31, 2024. The random-origin specification allows suppliers to nominate from a range of exporting regions, potentially including Black Sea, EU, or other major wheat origins.
Competitive Tender Pricing
The tender attracted strong interest from leading global grain traders, with bids tightly clustered around the winning price. The narrow spread highlights both competitive dynamics among exporters and a market where supply appears adequate at current price levels.
| Bidder | Volume (Tons) | Price ($/MT C&F Aqaba) | Delivery Window |
|---|---|---|---|
| Buildcom (Awarded) | 60,000 | $276.0 | 16–31 Aug 2024 |
| CHS | N/A | $278.0 | 16–31 Aug 2024 |
| Ameropa | N/A | $280.6 | 16–31 Aug 2024 |
| Dreyfus | N/A | $282.0 | 16–31 Aug 2024 |
| Tender Plan | 120,000 (target) | — | Aug 2024 |
| Actual Purchase | 60,000 (50% filled) | $276.0 | 16–31 Aug 2024 |
Market Impact and Price Signals
The $6 per ton spread between the lowest winning offer and the highest bid (from $276 to $282/MT C&F) indicates relatively tight pricing and limited dispersion among suppliers. This suggests that, at current levels, global wheat availability is adequate, and exporters are competing aggressively for business.
The decision by Jordan to cover only half of its tendered volume is neutral to slightly bearish for Black Sea wheat. It may signal either limited willingness to pay above $276/MT or a strategic choice to wait for potentially lower prices in later tenders. If Jordan and other buyers anticipate softer values ahead, Black Sea and other exporters may need to maintain or sharpen their pricing to secure future sales.
Given the random-origin specification, the awarded cargo could be sourced from multiple origins, but the competitive levels are consistent with Black Sea and European supply being actively offered into the region. Upcoming Jordanian tenders will be closely watched for confirmation of any further downside pressure or stabilization in C&F values.
Source: Market Data
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