Egypt bought another large batch of Russian wheat at $287.4/t C&F

The state Egyptian operator GASC purchased 480,000 tons of Russian wheat at an international tender on December 19 with delivery in February 2024 and payment in 270 days at a price of $265/t FOB + freight $22.4 (21) $/t = 287.4 (286) $/t C&F, while the purchase price at the previous auction on December 5 was $275.17/t C&F.

13 (9 in previous auctions) Russian wheat offers were submitted to the tender at a price of $260 (260) $/t FOB with payment in 180 days or $270 (265) $/t FOB with payment in 270 days, 4 (3) offers of French wheat at at $267-268/t FOB 180 days or $273-275/t FOB 270 days ($268-272/t FOB) and 2 (1) Romanian wheat offers at $264 and $270/ t FOB with payment in 180 days ($269 and $300/t FOB with payment in 270 days).

The prices of the submitted offers corresponded to the price level of the December 7 tender, only French wheat was offered somewhat cheaper.

March wheat futures on world exchanges continue to fall under the pressure of low demand for wheat in the USA and the EU.

For almost half of the 2023/24 MR, the EU exported only 13.9 million tons of wheat out of the projected 37.5 million tons, which is 16% less than last year's pace.

Wheat exports from the USA as of December 12 reached 8.926 million tons, which is 28% less than on this date last year.

At the same time, during July - October, the Russian Federation exported 23.6 million tons of wheat, which is 20% ahead of last year's pace, in particular, for the half of December - 1.9 million tons, out of the forecasted 4 million tons for this month. It is worth noting that during 2023, exports of wheat from the Russian Federation amounted to at least 4 million tons per month, and in August even reached 7.7 million tons.

Ukraine exported 6.5 million tons of wheat between July 1 and December 15, which is 14% less than last year's pace.