Egypt bought wheat for 6 6.6 / ton more expensive than in September

Yesterday, Egyptian GASC at the next tender purchased 240 thousand food wheat for delivery on November 11-20 at an average price of F 320.51/ton FOB or 3 351.6/ton C&F, which is 7 7.42/ton FOB and C 6.67/ton CFR higher than at the previous auction on September 8.

In particular it was purchased:

• 180 thousand tons of Russian wheat from Solaris Commodities SA at the price of 3 320.69 / t FOB + freight 3 31.30 / T = 3 351.99 / T s & F,
• 60 thousand tons of Romanian wheat from Cargill at the price of F 319.97/t FOB + freight 3 30.50/T = 3 350.47 / T S&F.

The cheapest on the FOB basis was Romanian wheat with a price of 3 319.97/ton FOB, and the most expensive was Ukrainian wheat, which was offered at 3 321.35/ton FOB. Compared to the previous tender, the discrepancy between the prices of offers decreased and they were approximately at the level of F 320/ton FOB. The reduction in the cost of freight limited the increase in prices on the C&F basis.

Recall that at the previous tender on September 8, GASC purchased 3000 thousand Ukrainian and Russian wheat with 12.5% protein and delivery from October 25 to November 3 at an average price of F 313.09/ton FOB or С 344.93/ton C&F, which is 6 6/ton FOB and C 4.48/ton CFR higher than at the previous auction on August 30, when 120 thousand tons of Romanian and 60 thousand tons of Ukrainian wheat were purchased.

The increase in domestic wheat prices in Ukraine and the containment of sales by producers limits the competitiveness of Ukrainian grain on the world market.