Egypt will intensify the procurement of wheat on a background of reduction of prices
the Decrease of stock exchange prices of wheat, which lasts from the beginning of the week, putting pressure on the quotes of the black sea wheat which stopped growth and even turned down.
the decline of the prices of the Egyptian GASC yesterday held a tender for purchase of wheat, where, as expected, and traders, have acquired considerable quantities of grain at cheaper than last week price.
the Number of proposals for participation in the auctions rose to 33, of which Ukrainian wheat was 12 filings, the Russian - 21, whereas the Romanian and French wheat bid was not involved.
as a Result of high competition between sellers bid prices of Russian wheat has fallen compared to the previous week 0.45-3 $/ton to 212,1-219,9 $/MT FOB, while Ukrainian - 0.6-1 $/t to 214,5-219,5 $/t FOB.
At yesterday's tender, GASC bought 295 thousand tons of Russian and 115 thousand tons of Ukrainian soft milling wheat with protein 12.5%, and supply 11-30 September on the terms of payment for 180-day letter of credit at an average price of 212,76 $/t FOB or 226,71 $/t C&F, which is 2.65 $/t FOB and of 1.78 $/t C&F lower than the purchase price of the previous trading, where it was contracted 470 thousand tons of Russian and Ukrainian wheat.
the tender was purchased the next batch of Russian wheat:
the
60 kt in the company Posco for a price of 213,35 $/t FOB or 226,90 $/t CFR;
55 kt in the company Solaris at a price 212,1 $/t FOB or 226,66 $/t CFR;
60 kt in the company's Grain Export at a price 213,65 $/t FOB or 227,20 $/t CFR.
- 120 thousand tonnes of Solaris at a price 212,1 $/t FOB or 225,65 $/t CFR;
And the party of Ukrainian wheat:
the
60 thousand tons of the company Dreyfus at a price 213,3 $/t FOB or 226,93 $/t CFR.
- 55 kt in the company Inerco Trade at a price of 213 $/t FOB or 227,95 $/t CFR;
Egyptian tenders are the main indicators of the quotes of the black sea wheat, so the lower prices will increase demand from other buyers of wheat.
