Iran buys U.S. wheat despite tensions
March 2, 2012 - 16:36
WASHINGTN (Reuters) - Iran has made purchase of U.S. wheat in an effort to build food stockpiles as the United States and Europe implement tough new sanctions against Iran.
The U.S. Agriculture Department reported on Thursday that Iran bought 120,000 tons of U.S. wheat — enough to fill two large cargo ships.
While not illegal, the deal caught traders by surprise as tensions mount between the West and Iran.
In the last month, Iran has bought nearly 3 million tons of wheat.
Iran has asked to import a million tons of wheat from Pakistan in a barter deal and also approached India. The Islamic Republic has also bought nearly 2 million tons in February from Russia, Germany, Canada, Brazil and Australia.
Traders were unable to confirm which grain company sold the wheat to Iran, but suspected major grain companies such as Cargill Inc, Bunge Ltd or Archer Daniels Midland. ADM and Bunge did not respond to inquiries seeking comment and Cargill said they do not comment on market rumors.
“Cargill, like a variety of other multinational companies with a global agricultural footprint, does sell agricultural commodities to Iran, as food is specifically excluded from the sanctions. We take great care to ensure that these sales respect both the spirit and the letter of the law,” Cargill spokesman Mark Klein added.
Iran last purchased U.S. wheat in 2009 but Thursday’s sale would be the largest U.S. wheat sale to the country since August 2008, a year when severe drought halved the country’s domestic crop and triggered record imports, according to USDA data.