Cheap Ukrainian wheat reduced the purchase price at the GASC tender in Egypt

On January 9, the Egyptian state operator GASC held an international tender for the purchase of wheat, where it purchased a significant batch of Russian grain at a slightly lower price than at previous auctions.

The following proposals were submitted to the tender:

• 15 (13 at previous auctions) lots of Russian wheat at a price of $265 (260)/t FOB with payment in 180 days and $270 (270)/t FOB with payment in 270 days,
• 2 (4) batches of French wheat at a price of $272 (267-268) $/t FOB with payment 180 days and $277 (273-275) $/t FOB with payment 270 days,
• 3 (2) batches of Romanian wheat at the price of $263.5-267 (264 and 270) $/t FOB with payment of 180 days and $269.5-274.83 (300) $/t FOB with payment of 270 days,
• 1 batch of Ukrainian wheat from the Nibulon company at a price of $261/t FOB with payment of 180 days and $266/t FOB with payment of 270 days, which became the cheapest of the offers.

The offer price of Ukrainian wheat was $1.35/t lower than at the previous tender on December 28, which was cancelled.

All offers of Russian wheat had the same price, which increased from $260 to $265/t on FOB terms with payment in 180 days.

As a result, GASC purchased 420,000 t of food wheat for delivery 29 February - 11 March at an average price of $285.05/t C&F and payment 270 days after the opening of the letter of credit, as follows:

• 120,000 tons of Russian wheat each from Cereal Crops Trading and Grain Flower at a price of $265/t FOB Novorossiysk / NKHP + $20.75/t freight = $285.75/t C&F,
• 120,000 tons of Russian wheat from Aston Agro-Industrial SA at a price of $265/t FOB Caucasus + $20/t freight = $285/t C&F,
• 60,000 tons of Ukrainian wheat from the Nibulon company at a price of $264.95/t FOB Constanta + $17.4/t freight = $282.35/t C&F.

We will remind that on December 19, 2023, GASC purchased 480,000 tons of Russian wheat for delivery in February 2024 at a price of $265/t FOB + $22.4/t freight = $287.4/t C&F with payment in 270 days. while the purchase price at the forward auction on December 5 was $275.17/t C&F.

In total, in FY 2023/24 GASC purchased:

• 2.7 million tons of Russian wheat,
• 600 thousand tons of Romanian wheat,
• 160 thousand tons of Bulgarian wheat,
• 120 thousand tons of French wheat,
• 120 thousand tons of Ukrainian wheat,
• 480 thousand tons of wheat produced in other countries.