Ethiopia Cancels 400,000 tonnes Wheat Purchase- Report

ADDIS ABABA – The Ethiopian government has canceled a planned purchase of 400,000 tonnes of wheat provisionally bought in May, European traders said on Tuesday, according to Reuters news agency.

The purchase was part of a 600,000 tonnes purchase but prices are said to be regarded as too high.

The other 200,000 tonnes offered in the deal will be bought, Reuters quoted the traders as saying.

The 400,000-tonne purchase was believed to have been made from the trading companies Martina Mertens and Olam International, according to the news agency.

Detailed prices paid were not available.

Ethiopia is struggling with the impact of natural disasters including the invasion of locusts that is affecting crops in much of the East African nations.