Egyptian GASC purchased 470,000 tons of wheat at a price of $302.2/t C&F

The Egyptian state agency GASC held a wheat procurement tender on June 4, where it purchased 470,000 tons of wheat at a price $22.8/ton higher than at the previous auction on May 8.

 

The number of tender offers for Russian wheat fell sharply, and prices were different for the first time in many months. The offer of Romanian wheat increased significantly, and the offered batch of Ukrainian wheat was once again the cheapest. In general, offers were $16.5-$38/t higher than in May, so traders did not expect GASC to buy a large batch.

 

The following applications were submitted to the tender (all with payment after 270 days):

• 8 (12 in the May 8 tender) lots of Russian wheat at a price of $285 and $289 (255)/t FOB,
• 7 (1) batches of Romanian wheat at a price of $282-299 (278)/t FOB,
• 4 (5) batches of French wheat at a price of $291.7-293.5 (266-271)/t FOB,
• 3 (2) batches of Bulgarian wheat at a price of $290-297.5 (273.49)/t FOB,
• 2(0) batches of Ukrainian wheat at a price of $271.75 and $292 (0)/t FOB.

 

As a result, GASC purchased 470,000 tons of European wheat for delivery July 5-25 and payment 270 days after the opening of the letter of credit at an average price of $302.2/t C&F ($22.8/t higher than May 8), namely :

• 60 thousand tons of Romanian wheat from AMS Ameropa at a price of $281.5/t FOB + $19.25/t freight = $300.75/t C&F with delivery July 5-15,
• 60,000 tons of Romanian wheat from ADM at a price of $281.5/t FOB + $19.25/t freight = $300.75/t C&F with delivery July 15-25,
• 60 thousand tons of Romanian wheat from the CHS company at a price of $281.5/t FOB + $19.25/t freight = $300.75/t C&F with delivery July 5-15,
• 60 thousand tons of Ukrainian wheat from the LDC company at a price of $268.8/t FOB + $34.15/t freight = $302.95/t C&F with delivery July 5-15,
• 60,000 tons of Ukrainian wheat from the Nibulon company at a price of $282/t FOB + $19.25/t freight = $301.25/t C&F with delivery on July 15-25,
• 60 thousand tons of French wheat from Bunge at a price of $281/t FOB + $23.25/t freight = $304.25/t C&F with delivery July 5-15,
• 60,000 tons of French wheat from Viterra at a price of $281/t FOB + $23.25/t freight = $304.25/t C&F with delivery July 5-15,
• 50,000 t Bulgarian wheat from Buildcom at $284.25/t FOB + $14.7/t freight = $298.95/t C&F for July 5-15 delivery.

 

The absence of Russian wheat among the winners of the tender indicates that traders from the Russian Federation did not receive permission from the authorities to lower prices.

 

It will be recalled that GASC purchased the following batches of wheat at previous tenders:

• May 8 – 420,000 t with delivery in June and payment in 270 days at a price of $279.22/t C&F,
• April 16 – 120,000 tons of Ukrainian wheat with delivery on May 20-30 and payment in 270 days at an average price of $255.98/t C&F,
• March 20 – 120,000 tons of Bulgarian and Romanian wheat with delivery on May 20-30 and payment in 270 days at an average price of $253.27/t C&F,
• February 15 – 120,000 tons of Ukrainian wheat at a price of $218.1/t FOB + $36.9/t freight = $255/t C&F and 60,000 tons of Romanian wheat at a price of $237.4/t FOB + 17.6 $/t freight = $255/t C&F with payment in 270 days,
• January 17 – 360,000 tons of wheat for delivery on March 15-30 at an average price of $285.48/t C&F,
• January 9 – 420,000 tons of mostly Russian wheat for delivery February 29-March 11 at an average price of $285.05/t C&F and payment in 270 days,
• December 19 – 480,000 tons of Russian wheat for delivery in February at a price of $265/t FOB + $22.4/t freight = $287.4/t C&F with payment in 270 days,
• December 5 – 180,000 tons of wheat at a price of $275.17/t C&F.