Sudan Bids to Import Flour, Wheat

Supporters gather outside the National Prison during the release of politicians and journalists, after demonstrations in Khartoum, Sudan February 18, 2018. REUTERS/Mohamed Nureldin Abdallah
Supporters gather outside the National Prison during the release of politicians and journalists, after demonstrations in Khartoum, Sudan February 18, 2018. REUTERS/Mohamed Nureldin Abdallah
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Sudan Bids to Import Flour, Wheat

Supporters gather outside the National Prison during the release of politicians and journalists, after demonstrations in Khartoum, Sudan February 18, 2018. REUTERS/Mohamed Nureldin Abdallah
Supporters gather outside the National Prison during the release of politicians and journalists, after demonstrations in Khartoum, Sudan February 18, 2018. REUTERS/Mohamed Nureldin Abdallah

The Ministry of Finance and Economic Planning launched Sunday an open tender on the supply of 500,000 tons of wheat and flour, in response to a wave of protests Sudan witnessed in the past days.

Days earlier, Sudan's Prime Minister Moataz Moussa announced budget 2019 that encapsulates subsidies allocations of SDG66 billion (USD1.4 billion) and SDG53 billion out of them are for bread and fuel.

Sources told Asharq Al-Awsat newspaper that the wheat and flour bid is meant to calm protesters and easing living conditions that are affected by bread prices and scarcity of wheat.

Economist Prof. Mohamed Jack Ahmad told Asharq Al-Awsat that the success of the public budget is hinged to negative economic indicators including the inflation rate, foreign currencies exchange, the rise of services and commodities prices, and the recession in Sudanese markets.

Director-General of the Agricultural Bank of Sudan Salah al-Din Hassan said that the amount of the tender is to be determined later after the closing date of submission, pointing out that the last tender for the supply of wheat issued by the Ministry of Finance was about two years ago.

Former deputy minister of foreign trade and former official of the wheat file Al-Kindi Yusuf pointed out that the scarcity of strategic commodities, including wheat and bread flour, has become a phenomenon associated with the economies of developing countries, which is always paid to plan for self-sufficiency.

Yusuf pointed out that the tender for wheat and bread flour at this particular time means that the government has renewed the support that stopped the commodity to absorb the political turmoil caused by citizens in protest against the high prices of bread.



Oil Prices Rise as Concerns Grow over Supply Disruptions

Oil Prices Rise as Concerns Grow over Supply Disruptions
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Oil Prices Rise as Concerns Grow over Supply Disruptions

Oil Prices Rise as Concerns Grow over Supply Disruptions

Oil prices climbed on Tuesday reversing earlier declines, as fears of tighter Russian and Iranian supply due to escalating Western sanctions lent support.

Brent futures were up 61 cents, or 0.80%, to $76.91 a barrel at 1119 GMT, while US West Texas Intermediate (WTI) crude climbed 46 cents, or 0.63%, to $74.02.

It seems market participants have started to price in some small supply disruption risks on Iranian crude exports to China, said UBS analyst Giovanni Staunovo.

In China, Shandong Port Group issued a notice on Monday banning US sanctioned oil vessels from its network of ports, according to three traders, potentially restricting blacklisted vessels from major energy terminals on China's east coast.

Shandong Port Group oversees major ports on China's east coast, including Qingdao, Rizhao and Yantai, which are major terminals for importing sanctioned oil.

Meanwhile, cold weather in the US and Europe has boosted heating oil demand, providing further support for prices.

However, oil price gains were capped by global economic data.

Euro zone inflation

accelerated

in December, an unwelcome but anticipated blip that is unlikely to derail further interest rate cuts from the European Central Bank.

"Higher inflation in Germany raised suggestions that the ECB may not be able to cut rates as fast as hoped across the Eurozone, while US manufactured good orders fell in November," Ashley Kelty, an analyst at Panmure Liberum said.

Technical indicators for oil futures are now in overbought territory, and sellers are keen to step in once again to take advantage of the strength, tempering additional price advances, said Harry Tchilinguirian, head of research at Onyx Capital Group.

Market participants are waiting for more data this week, such as the US December non-farm payrolls report on Friday, for clues on US interest rate policy and the oil demand outlook.