Egyptian GASC bought wheat at the tender for $ 486.17 / t C&F

Russia's senseless war against a free and democratic Ukraine has been going on for 50 days, and it continues to bring about the destruction of cities, the deaths of thousands of people and rising oil and food prices, which will affect the entire civilized world.

Egypt, the world's largest importer of wheat, held its first post-war tender yesterday, buying wheat 44% more expensive than in February.

On April 13, the state operator GASC purchased 350,000 tons of food wheat at an international tender at an average price of $ 451.3 / t FOB or $ 486.17 / t C&F, which is $ 133.3 / t FOB or $ 147.62 / t C&F higher than at the auction on February 17.

The tender concluded:

• 240 thousand tons of French wheat at the price of $ 451.75 / t FOB + $ 42.5 / t freight = $ 494.25 / t C&F with delivery on May 20-31,
• 60 thousand tons of Bulgarian wheat at the price of $ 449.5 / t FOB + $ 30.5 / t freight = $ 480 / t C&F with delivery on May 20-31,
• 50 thousand tons of Russian wheat at a price of $ 460 / t C&F with delivery on June 1-15, 2022.

It will be recalled that on February 17, GASC purchased 180,000 tons of Romanian food wheat at a price of $ 318 / t FOB or $ 338.55 / t C&F, which is $ 10.4 / t FOB or $ 10.3 / t C&F lower, than at the auction on January 28.

As a result of rising oil prices and military action in the Black Sea, freight rates rose by 50-70%.

The Algerian state agency OAIS bought 100,000 tons of food wheat produced in Romania and Bulgaria at a price of $ 460 / t C&F with delivery in May-June. At the end of March, Algeria held a tender to buy 600,000 tons of European wheat for $ 448 / tonne C&F. Algeria does not publish the results of its tenders, so the reports are formed and trade estimates of market operators.

The results of the tenders were supported yesterday by wheat quotations.

May wheat futures in the US rose:

• $ 3.58 / t to $ 409.1 / t for soft winter SRW wheat in Chicago,
• $ 4.32 / t to $ 431.4 / t for winter winter HRW wheat in Kansas City,
• $ 1.1 / t to $ 425.9 / t for hard spring HRS wheat in Minneapolis.

Black Sea wheat remained at $ 390.75 / t in Chicago.

FranceAgriMer experts lowered the forecast for wheat exports outside the EU in 2021/22 MY from 9.7 to 9.5 million tons, but raised the forecast for exports to EU countries to 17.7 million tons. 6 million tons, which will be slightly inferior to last year's 21.4 million tons.

• May wheat futures on Euronext in Paris rose by € 3.75 / t to € 403 / t or $ 439.2 / t.

The USDA representative in Brazil predicts that increasing the sown area of wheat by 700 thousand hectares to 3.4 million hectares will increase the yield to 9 million tons in 2022/23 MY and abandon imports. For India, the wheat harvest in 2022/23 MY is projected at a high level of 110 million tons, despite the reduction of sown areas to 30.9 million hectares, but wheat exports will remain at 10 million tons, as in the current season.