Purchase price in Egypt again increased by 5 $/t

At yesterday's tender in Egypt, the sellers continued to raise prices, however, the Russian proposal was too expensive, so GASC refused them.

compared To the previous auction, which was held two weeks ago, the bid prices of Russian wheat on FOB basis rose by 8.75-19,5 $/t, Ukrainian – 6.6-9 $/ton, French – 4,25 $/t

the Containment of sales of the Russian manufacturers have led to higher prices of offers 190-195 $/t FOB in August to 221,26-232 $/MT FOB in October, though the pace of Russian wheat exports remain low in comparison with its competitors from Ukraine, the EU and the United States.

GASC Yesterday bought 4 shipments of Ukrainian, Romanian and French wheat for delivery 5-15 December at an average price of 218,06 $/t FOB or 235,51 $/t CFR, which is by 5 $/t higher than the purchase price at the previous tender when it was purchased 405 thousand tons, mostly Russian wheat.

Experts expect that due to the cost of Russian wheat GASC will give preference to European wheat, which once again turned out to be cheaper and offered via 214,5 $/t FOB. U.S. wheat again did not participate in the auction due to too high price.

In the end, the auction was purchased:

60 KMT of Ukrainian wheat from Dreyfus company at a price 236,16 $/t CFR (219,5 $/t FOB + 16,66 $/t freight),

60 KMT of French wheat from Glencore at a price 235,85 $/t CFR (214,5 $/t FOB + 21,35 $/t freight),

60 KMT of Romanian wheat from Cargill at a price 235,40 $/t CFR (220,75 $/t FOB + 14,65 $/t freight).

• 55 thousand tons of Ukrainian wheat from Olam at a price 234,55 $/t CFR (217,45 $/t FOB + 17,1 $/t freight),

we will Remind that on September 25, GASC purchased in the tender 300 thousand tons of Russian and French wheat at an average price of 214,02 $/t CFR.

In October amid rising prices Egypt and other importing countries are actively buying wheat that warmed up the market, even despite the considerable world stocks and the proposals in the current season.

the Growth of purchase prices for tender will support the global quotations, but will lead to lower prices for Russian wheat, which will put pressure on prices in the black sea region, especially in November and December when the markets will be Australian and Argentine wheat.