Egyptian GASC bought only two lots of wheat, but cheaper than last week

a Sharp decline in wheat prices on the global exchanges has led to falling prices for black sea wheat.

Egypt, the world's largest wheat importer, buys mainly black sea grain. In this season of declining production in Romania and France on Egypt's tenders, Russian and Ukrainian wheat almost will not have competitors. So traders did not expect a reduction in the purchase price of the next tender, even though the increase in crop forecast in Russia.

At yesterday's tender the number of offers of wheat dropped to 19, compared with 33 last week, in particular, the Ukrainian wheat from 12 to 5, whereas French and Romanian wheat participation in auction did not accept.

bid Prices of Ukrainian wheat decreased on 1,05-1,25 $/t to 205,95-215,5 $/t FOB, although in comparison with previous trading, one company has reduced the price of 7.05 $/t, and the other raised to 2,5 $/t

bid Prices of Russian wheat decreased by 0.1-to 6.2 $/ton to 205,9-217,48 $/t FOB, but the two sentences were by 4.38 $/t and 5.38 $/t more expensive than a week ago, which testifies to the unwillingness of some sellers to lower the price of wheat of the new harvest.

In the end, GASC bought 120 thousand tons of Russian soft milling wheat with protein 12.5% and delivery 25 September – 5 October in the company Agro AST for the price of a 205.5 $/t FOB or 219,6 $/t C&F, which is 7.3 $/t FOB and 7.1 $/t C&F lower than the purchase price of the previous trading, when was zakontraktovano 410 thousand tons of Ukrainian and Russian wheat.

a Small volume of purchased wheat suggests that the sellers are in no hurry to lower prices, whereas GASC expects further declines.

If the August USDA report will be neutral for the wheat market, and manufacturers of Ukraine and Russia will continue to restrain sales, Egypt will be difficult to find on the world market, replacement of cheap black sea wheat.