The Egyptian GASC purchased only 280,000 tons of wheat from the planned 3.8 million tons at the tender

On August 12, the Egyptian GASC held its largest tender for the purchase of wheat, where it wanted to purchase 3.8 million tons for delivery from October 2024 to April 2025. But in the end it bought only 280 thousand tons of wheat, since the prices of offers for October deliveries were 23- $60/t higher than for September delivery at the July 16 tender, despite the drop in world prices to the lowest level since 2020/21 MR. The increase in prices is due to the change in terms of payment from immediate to deferred up to 270 days.

The following applications were submitted to the tender (with payment deferred for 270 days):

• 13 (19 at auction on July 16) batches of Russian wheat at a price of $253-274 (226-238)/t FOB,
• 7 (10) batches of Romanian wheat at a price of $254-352 (232-250)/t FOB,
• 1 (4) batch of French wheat at a price of 281-303 ( 242-249.85) $/t FOB,
• 5 (1) batch of Ukrainian wheat at a price of $244-302 (239)/t FOB,
• 3 (4) batches of Bulgarian wheat at a price of $250-280 (229-234.99)/t FOB,
• 1 (0) batch of Argentine wheat at a price of $293/t FOB and delivery January 1-15.

The cheapest was the offer of Ukrainian wheat with a price of $244/t FOB, which was $23/t higher than the purchase price at the auction on July 16. But unlike the previous tender, the terms of payment changed from immediate to deferred up to 270 days.

As a result, GASC purchased 280,000 t of wheat with payment in 270 days at an average price of $242.1/t FOB or $265.85/t C&F (which is $24.78/t higher than at the July 16 auction), and exactly:

• 180,000 tons of Ukrainian wheat from Cargill and LDC for delivery on October 1-15 at a price of $241 (221)/t FOB + $28.25 (20.36)/t freight = $269.25 (241.36)/ t C&F,
• 100 thousand tons of Bulgarian wheat from the Farm Sense company with delivery from October 16 to November 30 at a price of $243.74 (221)/t FOB + $16.99 (16.6)/t freight = 260.74 (237.6 ) $/t C&F.

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

• July 16 - 770 thousand tons of Russian and Bulgarian wheat with delivery on September 11-30 and immediate payment at an average price of $221/t FOB or $241.07/t C&F,
• June 25 – 470 thousand tons of Romanian, Bulgarian, Ukrainian and Russian wheat with delivery from August 21 to September 10 and payment immediately after delivery at an average price of $246.59/t C&F,
• June 11 – 460,000 tons of European wheat with delivery August 1-20 and payment after delivery at an average price of $268.83/t C&F,
• June 4 – 470,000 t of European wheat for July 5-25 delivery and payment in 270 days at an average price of $302.2/t C&F.