Egyptian GASC bought wheat for 1 12/ton cheaper than a month ago
The state Egyptian food procurement agency GASC purchased 420 thousand tons of food wheat at a tender on January 28 for delivery on March 5-26 at an average price of F 328.41/ton FOB or C 348.88/ton C&F, which is 7 7.23/ton FOB and.12.04/ton C&F lower than at the tender on December 29, and. 30/ton C&F lower than at the tender on November 29, 2021.
Most of the purchased batch was Ukrainian wheat, which was offered at a price of F 326-330.5/ton FOB or 3 346.89-C 351.73/ton C&F,which is lower than the price of the Russian and Romanian offers. In addition, due to the reduction in the cost of freight from 2 23-25/ton to 1 19.75 -. 21.3/ton, the price on the C&F basis significantly decreased compared to previous trading.
As a result GASC acquired at a tender:
- 120 thousand tons of Ukrainian wheat from Nibulon at the price of F 326/ton FOB + 2 20.89 / ton freight = 3 346.89 / ton C & F,
- 60 thousand tons of Ukrainian wheat from Inerco at the price of 3 328.77 / ton FOB + 2 21.23 / ton freight = 3 350.0 / ton C & F,
- 60 thousand tons of Romanian wheat from Ameropa at the price of 3 329.65 / ton FOB + + 19.75 / ton freight = 3 349.4 / ton C & F,
- 60 thousand tons of Romanian wheat from CHS at the price of F 329.65/ton FOB + + 19.75 / ton freight = 3 349.40 / ton C & F,
- 120 thousand tons of Russian wheat from Grainexport at the price of F 329.65/ton FOB + + 20.35/ton freight = 3 350.0 / ton C&F.
Recall that at the tender on December 29, 2021, GASC purchased 300 thousand tons of wheat, including 180 thousand tons of Ukrainian and 60 thousand tons of Romanian and French, which indicates increased competition in the Egyptian market between traders from Europe, Ukraine and Russia.
Experts expected an increase in the supply of French wheat at the new tender, but Ukrainian sellers sharply reduced prices to boost sales.
