Egypt to tender bought only the cheapest Russian wheat

Yesterday, the Egyptian state operator GASC to tender once purchased 415 thousand tons of the cheapest of the wheat, which turned out to be of Russian origin. The purchase price with delivery was only $1/t higher than at the previous auction, 20 December 2018 and made 264-265 $/t C&F.

feature of the new tender was a sharp increase in proposals for the sale of wheat of different origin. The increase in purchase prices to the level of $250/t FOB-Black sea ports have made the tender is interesting for European and American wheat.

participation in the tender accepted 23 applications compared to 8 in the previous session, namely:

six batches of wheat of Romanian origin at a price 252,99-of 259.5 $/t FOB,

two batches of wheat of French origin for the price of 251,93 and 252,43 $/t FOB,

one party of Ukrainian wheat at a price 253,75 $/t FOB Odessa,

two batches of American wheat - SRW at a price of 239 $/t FOB, HRW at a price of 249 $/t FOB.

• twelve batches of wheat of Russian origin price 248-262 $/t FOB,

in General, the tender for the supply conditions during 20-28 February GASC bought Russian wheat only in the following amounts:

60 kt in the company GTCS for the price of 249 $/t FOB Novorossiysk at the cost of sea freight 15,45 $/t = 264,45 $/t C&F

60 thousand tons, the company ASTON for the price of 250 $/t FOB Novorossiysk at the cost of sea freight 15,45 $/t = 265,45 $/t C&F

55 kt in the company of COFCO at a price 249,40 $/t FOB Tuapse at the cost of sea freight 16,20 $/t = 265,60 $/t C&F

60 kt in DAEWOO at a price of 250 $/t FOB Novorossiysk at the cost of sea freight 13,75 $/t = 263,75 $/t C&F.

• 60 kt in the company GTCS for the price of 248 $/t FOB Novorossiysk at the cost of sea freight 15,45 $/t = 263,45 $/t C&F

in addition, the terms of delivery for March 1-10 were purchased the next batch of Russian wheat:

60 kt in the company GARANT Logistics at a price 250,50 $/t FOB Novorossiysk at the cost of sea freight 15,45 $/t = 265,95 $/t C&F.

• 60 thousand in the company GTCS for the price of 250 $/t FOB Novorossiysk at the cost of sea freight 15,45 $/t = 265,45 $/t C&F

Earlier it was expected that the growth of prices for Russian wheat above 250 $/t FOB will be the level at which American and European wheat will actively compete, which will increase pressure on prices. The growth in the number of proposals and good weather conditions for overwintering of winter wheat in the spring will be powerful factors reducing the prices due to the significant balances not sold in the US and the EU.