Romanian wheat wins Egypt tender again

At the next tender in Egypt, market participants expected an increase in competition between Russian and Romanian wheat, but in general, all offers were almost at the same levels, but Romanian wheat turned out to be cheaper, and only one Russian company was able to offer cheaper wheat with cheap freight.

 Prices for purchasing wheat delivered to Egypt did not significantly decrease due to the increase in freight costs.

 Yesterday's tender of the Egyptian GASC reminded markets that in addition to buyers and sellers, there is also a carrier and the cost of delivery can significantly affect prices, and against the background of rising oil prices, the cost of freight will continue to rise.

A total of 18 bids were submitted at the tender in Egypt:

•  8 Romanian wheat at prices of F 237.94-F 243.5/ton FOB;
•  5 Russian offers at prices of F 238.1-F 245 / ton FOB;
•  5 offers of Ukrainians at prices of 239.45-246 f/ton FOB.

It is worth noting that Romanian wheat was again the cheapest, and Ukrainian wheat was the most expensive.

As a result, on July 5, Egyptian GASC purchased 240 thousand tons of wheat at the tender, including only one batch of Russian and three Romanian wheat for delivery on September 1-15 at an average price of F 238.38/ton FOB, which is 4 4.55/ton lower than at the previous auction on June 28 (-15.5 $/ton against the tender on May 24). But the cost with delivery was at the level of C 269.83/ton C&F, which is only 0 0.95/ton less than a week ago and 6 6.77/ton less than on May 24, 2021.

Total was purchased:

• 60 thousand tons of Russian wheat from GTCS at the price of F 240 / ton FOB or C 267.7 / ton C&F;
• Viterra, CHS and Ameropa have 180 thousand tons of Romanian wheat at a price of F 237.84 / ton FOB, or C 270.54/ton C&F.

Recall that at the previous tenders on May 24 and June 28, 240 and 180 thousand tons of Romanian wheat were purchased.

The cost of freight for the supply of wheat to Egypt from the ports of Russia and Ukraine jumped to 3 36-40/ton, while from Romania to 3 32.7-35/ton, although a year ago it was about.15-16/ton.