The purchase price of the Egyptian tender went up by 5 $/t

Yesterday, the Egyptian GASC bought at the tender 300 tons of wheat for delivery during the period October 26-November 5 at an average price of 214,02 $/t CFR, which is by 5 $/t higher than at the previous auction. Last week, GASC canceled a second tender to purchase wheat for delivery in November, for the high bid prices and purchased 180 thousand tons of wheat at a cheap price of 5 $/MT lower than at the August tender.

This time the cheapest on FOB became the French wheat, which was offered at 193,36 $/t FOB, while the average price of Russian wheat was 197,36 $/t FOB. The combination of a record harvest and low rate of the Euro makes French wheat is the most competitive in the world markets.

However, due to the low cost of freight of Russian wheat was cheaper on the basis of the CFR, therefore, GASC purchased 240 thousand tons of Russian wheat at an average price of 213,79 $/t CFR and 60 KMT of French wheat at a price 214,95 $/t CFR. This is the second batch of French wheat, which GASC has purchased this season. But the previous one was purchased from Glencore at a price 215,09 $/t CFR.

Only the tender was purchased:

60 thousand tons of Russian wheat from company Agro AST for the price 213,25 $/t CFR (196,45 $/t FOB + 16,8 $/t freight);

60 thousand tons of Russian wheat from Posco International price 214,30 $/t CFR (197,5 $/t FOB + 16,8 $/t freight);

60 thousand tons of Russian wheat from Posco International price 214,55 $/t CFR (197,75 $/t FOB + 16,8 $/t freight);

60 KMT of French wheat from Glencore at a price 214,95 $/t CFR (193,75 $/t FOB + 21,2 $/t freight).

• 60 thousand tons of Russian wheat from GrainExport of the company at a price 212.87 fro $/t CFR (197,75 $/t FOB + 15,12 $/t freight);

in General, in 2019/20 MG GASC acquired 2.61 million MT of wheat, of which 1,355 million MT of Russian, 660 thousand tons of Romanian, 475 thousand tons of Ukrainian and 120 thousand tons of the French.

the results of the tender indicate that the sellers of Russian wheat are not willing to lower the price, but to expect growth despite the slight growth in export demand. The strengthening of the ruble exchange rate and export prices declined compared to last year has lowered domestic purchasing price for wheat, which led to a reduction in offers from manufacturers, a slowdown in exports and, in turn, the cost of freight. Additionally, prices of Russian wheat supported the reduction in the cost of transshipment in the ports 22-23 $/t to 14-15 $/t