European traders reported on Wednesday that SLAL, the Iranian state-owned animal feeding importer, is believed to be the buyer of animal feed corn at an international tender for around 120,000 metric tonnes which closed on Tuesday.

Although the exact volume of goods purchased was not known, some sources estimated that approximately 180,000 tonnes in three consignments weighing about 60,000 tones were bought.

The estimated price per ton was around 235 Euros ($278.50). Iran has traditionally refused to purchase grain in U.S. Dollars.

The reports reflect the opinions of traders, and it is still possible to estimate prices and volume later.

Traders have not reported purchases of other tenders from SLAL on Tuesday. SLAL is seeking up to 120,00 tons of feed barley, and 120,000 tonnes of soymeal.

The tender was looking for yellow corn from Brazil, Europe or other Black Sea regions. The shipment was to be made in November and October.

Traders said that the Western sanctions on Iran had caused payment problems for Iranian companies, which made it difficult to participate in recent Iranian tenders.

The sanctions imposed by the West on Iran for its nuclear program do not apply to food, but they have affected Iran's financial system and created complex payment arrangements.

According to traders, Iran is offering cash payments immediately against documents for this week's auctions through two banks in Iraq and Turkey. Reporting by Michael Hogan and editing by Kirby Donovan. $1 = 0.8438 euro

(source: Reuters)