Iran is looking to buy US wheat despite the financial sanctions that mean Iranian buyers cannot use letters of credit (L/Cs) to finance transactions.

State grain buyers representing Iran have reportedly been in talks with exporters with a view to buying around 121,254 tons of US-origin milling wheat.

Unknown terms

Wheat traders have reported that Iran's state-owned Government Trading Corporation (GTC) has been in negotiations with trading houses looking to do deals.

Previously, GTC would have issued official tenders for wheat and purchased substantial amounts of it on L/C terms once a deal was struck.

It is unclear how any new wheat purchases from the US would be financed, though the Iranians are reportedly looking for wheat for April delivery.

Food shipments

Sanctions imposed by the US and the EU on Iran on account of its controversial nuclear programme and alleged support of terrorism do not stop food shipments.

But the sanctions do make it difficult for Iranian importers to obtain L/Cs to finance purchases or conduct international transfers of funds through banks.

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