Egyptian GASC bought Romanian and Ukrainian wheat $30/t cheaper than in January

On February 15, the Egyptian GASC held an international tender for the purchase of wheat, at which the purchase price was $30.5/t lower than at the auction on January 17, primarily due to low prices for Ukrainian wheat.

At the previous tender, GASC purchased a large batch of Russian wheat, although Nibulon significantly reduced the price of the offered Ukrainian wheat. And at yesterday's auction, GASC bought 120,000 tons of Ukrainian and 60,000 tons of Romanian wheat.

The following proposals were submitted to the tender:

• 21 (10 at previous auctions) lots of Russian wheat at a price of $245 (260) $/t FOB with payment in 180 days and $265 (265)/t FOB with payment in 270 days,
• 4 (3) lots of French wheat at a price of $240.86-246 (259.68-262)/t FOB with payment 180 days and $248.86-256 (267-271.5)/t FOB with payment 270 days ,
• 2 (1) the cheapest of the offered batches of Ukrainian wheat at the price of $222 and $234 (229.75)/t FOB with payment in 180 days and $229.9 and $239 (244.75)/t FOB with payment in 270 days,
• 4 batches of Romanian wheat at a price of $236.5-244.86/t FOB with payment 180 days and $241.5-252.86/t FOB with payment 270 days,
• 2 batches of Bulgarian wheat at a price of $238-250/t FOB with payment 180 days and $253-275/t FOB with payment 270 days.

Ukrainian Nibulon offered wheat at a price of $222/t FOB, which is $7.75/t lower than the offer price of Ukrainian wheat at the previous auction on January 17 and $40/t lower than the purchase price of the last tender.

All offers of Russian wheat had the same price (as in the last 6 months), $15/t lower than at the January 17 tender.

As a result, GASC purchased 180,000 tons of food wheat with delivery on April 10-25 and payment 270 days after the opening of the letter of credit at an average price of $255/t C&F, as follows:

• 60,000 tons of Ukrainian wheat from the Nibulon company at a price of $218.1/t FOB + $36.9/t freight = $255/t C&F,
• 60 thousand tons of Ukrainian wheat from the LDC company at a price of $218.1/t FOB + $36.9/t freight = $255/t C&F,
• 60 thousand tons of Romanian wheat from Ameropa at a price of $237.4/t FOB + $17.6/t freight = $255/t C&F.

We would like to remind you that in previous tenders GASC purchased:

• January 17 - 360,000 tons of food wheat for delivery on March 15-30 at an average price of $285.48/t C&F,
• January 9 – 420,000 tons of food (mainly Russian) wheat with delivery from February 29 to March 11 at an average price of $285.05/t C&F and payment 270 days after the opening of the letter of credit,
• December 19 – 480 thousand 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/ton C&F.