The Egyptian GASC purchased wheat at a higher price than in the previous tender

On April 16, the Egyptian GASC held an international tender for the purchase of flour wheat, at which it planned to increase the volume of purchases at a reduced price. However, the purchase price increased, and the volumes were insignificant.

The number of tender offers for Russian and Romanian wheat decreased, while the prices of Russian offers decreased and European prices increased.

The following offers were submitted for bidding on April 16:

• 10 (22 at the auction on March 20) batches of Russian wheat at a price of $230 (235)/t FOB with payment in 180 days and $235 (240)/t FOB with payment in 270 days,
• 4 (5) batches of French wheat at the price of $236-241 (233-238.5) $/t FOB with payment 180 days and $243-247 (238-243) $/t FOB with payment 270 days,
• 1 (5) batches of Romanian wheat at a price of $237.3 (232.5-240) $/t FOB with payment in 180 days and $240.6 (240-245) $/t FOB with payment in 270 days,
• 2 (2) batches of Bulgarian wheat at a price of $238.88-239.5 (234.5-237.37) $/t FOB with payment 180 days and 246.5-278.88 (240.5-245.37) $/t FOB with payment 270 days,
• 1 (0) batch of Ukrainian wheat at a price of $218.9/t FOB with payment in 180 days and $224.9/t FOB with payment in 270 days.

All offers of Russian wheat had the same price (as in the last 7 months), but $5/t FOB lower than in previous auctions. The cheapest offered was Ukrainian wheat ($218.9/t FOB), while Romanian wheat ($232.5/t FOB) was the cheapest at the March 20 tender.

As a result, GASC purchased 120,000 tons of Ukrainian flour wheat from the Louis Dreyfus company with delivery on May 20-30 and payment 270 days after the opening of the letter of credit at an average price of $255.98/t C&F (which is $2.7/t higher than the trading price March 20) in particular:

• 60 thousand t at a price of $220/t FOB + $35.35/t freight = $255.35/t C&F,
• 60k t at $221.25/t FOB + $35.35/t freight = $256.6/t C&F.

We will remind that GASC purchased the following batches of food wheat at previous tenders:

• March 20 – 120,000 tons of Bulgarian and Romanian wheat with delivery on May 20-30 and payment 270 days after the opening of the letter of credit at an average price of $253.27/t C&F,
• February 15 – 120,000 tons of Ukrainian wheat at a price of $218.1/t FOB + $36.9/t freight = $255/t C&F and 60,000 tons of Romanian wheat at a price of $237.4/t FOB + 17.6 $/t freight = $255/t C&F with payment in 270 days,
• January 17 – 360,000 tons of wheat for delivery on March 15-30 at an average price of $285.48/t C&F,
• January 9 – 420,000 tons of mostly Russian wheat for delivery February 29-March 11 at an average price of $285.05/t C&F and payment in 270 days,
• December 19 – 480,000 tons of Russian wheat for delivery in February at a price of $/t FOB + $22.4/t freight = $287.4/t C&F with payment in 270 days,
• December 5 – 180,000 tons of wheat at a price of $275.17/t C&F.

Egypt has already started buying wheat from local farmers with payment within 48 hours of delivery, and plans to buy a total of 3.5 million tons of wheat from them this year. At the same time, it is forbidden to transport local wheat from one place to another, if there is no permission for this from the supply department of the province from which the grain is exported. It is also prohibited to use local wheat in private mills during the supply season without permission from the Ministry of Supply, and owners of feed mills and fish farms are not allowed to use local wheat in any feed.