Egypt canceled the tender for the purchase of wheat without receiving a price discount

The state-owned Egyptian operator GASC planned to purchase wheat on December 28 at an international tender for delivery on March 1-10, 2024, but did not receive a price discount and canceled the auction.

The number of tender applications has decreased compared to previous auctions:

• Russian wheat - from 13 to 10, and prices increased from $260 to $265/t FOB with payment of 180 days and $270/t FOB with payment of 270 days,
• French wheat - from 3 to 2, and prices increased from $267-268 to $269-273/t FOB with payment of 180 days and from $273-275 to $274-285/t FOB with payment of 270 days,
• Romanian wheat - increased from 2 to 3, and prices increased from 264 to 266.7-277.83 $/t FOB with payment of 180 days and from 269 and 300 to 279-288 $/t FOB with payment of 270 days,
• Ukrainian wheat - 1 bid was submitted from Nibulon at a price of $262.35/t FOB with payment in 180 days and $267.35/t FOB with payment in 270 days.

At the previous auction on December 19, GASC purchased 480 thousand tons of Russian wheat with delivery in February 2024 and payment within 270 days at a price of $265/t FOB + freight $22.4/t = $287.4/t C&F, so on the last tender expected the same level of prices. However, sellers from the Russian Federation raised prices by $5/t and did not agree to a discount.

The State Agency of Bangladesh purchased 100,000 tons of presumably Russian food wheat from the Cereal company in two international tenders: 50,000 tons at a price of $317.56/t CIF and 50,000 tons at a price of $315.29/t CIF with delivery 40 days after signing the contract.