State grains buyer GASC has bought 240k tons of Russian wheat directly from suppliers for delivery in September, October and November, the Supply Ministry said in a statement yesterday. The authority purchased six 40k-ton cargos of grain for USD 368 a ton on a cost and freight basis (CFR) via 180-day letters of credit, traders with knowledge of the matter told Reuters.

Prices are finally taking a breather: This would make the purchase 8% cheaper than the most recent purchase at the end of July, when GASC bought 120k tons for USD 402.50 but still about 10% higher than government’s forecast, which sees prices averaging USD 330 during FY 2022-2023. Prices per ton are now averaging USD 272 in global markets, as easing grain shortages and growing fears of recession in advanced economies cause prices to fall back from record highs in mid-May.

It’s direct purchases as far as the eyes can see: Authorities are still in talks with suppliers over more direct wheat purchases, Reuters quoted sources in the know as saying. The authority was reportedly in direct talks with 14 wheat suppliers as of last month. The authority typically purchases wheat via tenders, but in May the cabinet gave the go-ahead for it to buy directly from suppliers after a series of tenders were canceled due to high prices.