Egypt purchased in the tender Ukrainian and Russian wheat

At yesterday's tender, the Egyptian GASC bought 295 thousand tons of Russian and Ukrainian wheat protein 12.5% and delivery within 15-30 September at a price of $1/t lower than the purchase price at the previous auction, when it was contracted 415 thousand tonnes, due to reduction of freight costs.

the bid Prices on FOB basis almost unchanged from the prices of the previous tender was 199,87-204 $/t FOB. The cheapest was again Ukrainian wheat at a price 199,87 $/t FOB, which corresponds to 218,17 $/t CFR, while Russian was offered at 202,48-204 $/t FOB or 218,01-222,07 $/t CFR.

as a result, the tender was purchased 120 thousand tons of Ukrainian wheat from Hakan companies and Louis Dreyfus, as well as 175 thousand tons of Russian wheat from companies, Hakan, АDМ and Solaris at an average price of 201,07 $/t FOB or 217,84 $/t CFR.

the purchase Price has fallen due to the decline in freight rates. And the increase in the volume of purchases, in particular of Russian wheat, indicate that the market has already determined the acceptable price levels agreeable to buyers and sellers.

the Tactics of the sellers of Russian wheat that contain sales to keep prices on the level 196-200 $/t FOB, justified, and buyers are not able to expect lower prices, they were forced to agree with them.

Monday, the fall in wheat prices in the European and American markets by 3-4% puts pressure on prices of Ukrainian and Russian grain, but the containment of sales manufacturers not allow traders to lower purchase prices.

estimates USDA, Egypt, what is the world's largest importer of wheat in 2019/20 Mr will acquire a 12.5 million tonnes of grain.