Egyptian GASC cancels tender for wheat purchase due to high prices

2021-06-16 12:02:13
Machine translation
Egyptian GASC cancels tender for wheat purchase due to high prices

The state-owned Egyptian operator GASC yesterday announced the refusal to hold a tender for the purchase of flour-milling wheat of any origin for delivery on August 21-31, 2021, which was supposed to take place today.

 

Although there was no official explanation, traders believe that the reason is a sharp rise in the price of sea freight rates, which have almost doubled since the previous tender.

 

It was also expected that against the background of a decline in World quotations, offer prices will be lower, but they amounted to 2 250.88-т 269.97/ton FOB, which almost corresponded to the level of previous trading. At the same time, freight prices increased to 2 27.5-30/ton compared to.19/ton at the end of May, when GASC purchased 240 thousand tons of Romanian food wheat for delivery on August 8-22 at a price of F 257.6/ton FOB or C 276.6/ton CFR.

 

It was expected that after the defeat at the previous tender, Russian exporters would reduce wheat prices. So it happened, Russian wheat this time was offered at the lowest price – 250.88 $/t FOB or 279 $/t CFR, Ukrainian – at 252.75-264 $/t FOB, Romanian – at 253.96 $/t FOB or 281.44 $/t CFR, and the most expensive was French with a price of 264.72 $/t FOB or 299.97 $/t CFR.

 

19 offers took part in the auction, including 6 Ukrainian wheat, 6 Romanian wheat, 2 French wheat and only 5 Russian wheat. A lower price for Romanian wheat than for Ukrainian wheat indicates that in the new season, European wheat will increase competition on the world market with Ukrainian and Russian grain.

 

According to the USDA forecast, Egypt, the world's largest buyer of wheat, will import 13.2 million tons of wheat in my 2021/22. 

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