Egyptian GASC bought wheat at a price of 1 17 / ton lower than a month ago

On December 29, the state-owned Egyptian operator GASC held an international tender for the purchase of food wheat for delivery from February 15 to March 3, 2022, the results of which were expected by traders, given the fall in prices on stock exchanges.

The number of applications submitted for the tender increased to 14, including French wheat – up to 3 and Ukrainian wheat – up to 5, although the offer prices for wheat from these countries were lower than for Russian wheat, which became the most expensive at the tender. Compared to the auction on November 29,the offer prices of Ukrainian wheat decreased from української 355/ton to F 335-340.89/ton FOB, French wheat - from французької 359.79 and французької 361.95/ton FOB to 3 331.86 and F 336.92/ton FOB, and it became the cheapest at the tender. At the same time, Romanian was offered at 3 340.95 and F 346.97/ton, and Russian – at.347-355/ton compared to F 350.85-F 359/ton FOB and F 351.37-F 362/ton FOB, respectively, a month ago.

As a result, GASC purchased 300 thousand tons of food wheat for delivery from February 15 to March 3, 2022 at an average price of F 335.65$/ton FOB or C 361.27/ton C&F, which is 16.72$/ton FOB and C 17.06 $/ton C&F lower than at the tender on November 29.

In particular the following batches were purchased:

• 60 thousand tons of Romanian wheat from CHS at the price of F 338.25/t FOB + + 23 / t freight = 3 361.25 / T C & F,
• 60 thousand tons of French wheat from Viterra at the price of F 330.5/ton FOB + 3 32.5 / ton = C 363 / ton C & F,
• Nibulon has 60 thousand tons of Ukrainian wheat at the price of F 335/ton FOB + F 24.6 / ton = C 359.6 / ton C & F,
• 60 thousand tons of Ukrainian wheat from Olam at the price of F 337.25/ton FOB + + 24 / ton = 3 361.25 / ton C & F,
• 60 thousand tons of Ukrainian wheat from Inerco at the price of F 337.25/t FOB + 2 24/T = 3 361.25 / T C&F.

It is worth noting that the cost of freight has already decreased to 2 23-25/ton, while in November it was 2 26/ton, and in September – 3 30-35/ton.

In total, in my 2021/22, Egypt's GASC has already held 16 tenders, where it purchased 3.825 million tons of flour wheat, mainly produced in Romania.