A Libyan state grain buying agency has issued an international tender to purchase 100,000 tonnes of milling wheat, 50,000 tonnes of durum wheat and 75,000 tonnes of yellow corn, European traders said on Thursday. The agency is also tendering to buy up to 75,000 tonnes of feed barley and 25,000 tonnes of soyameal, they said. The tender deadline is February 19, with shipment sought by the end of May.

Issued by the Matahan buying agency, the tender is the largest inquiry from Libya in recent months. "The tender is on an ambitious scale as several large multinational grain-trading houses are still avoiding the country because of political risk," one trader said.

"This seems to be a joint tender by the state entities in the west and east of the country, which have in the past operated separately from each other." Another trader added: "I have the impression rising oil production is giving Libya more spending power, enabling tenders to be issued on a larger scale." Libya's oil production is expected to rise from about 700,000 barrels per day (bpd) to 1.2 million bpd by August, a National Oil Corporation board member said on Wednesday. Libya's oil output has more than doubled since late last year after blockades were ended at several eastern oil ports.

Copyright Reuters, 2017