Egyptian GASC bought only two loads of wheat - the cheapest of the proposed

Like a week ago, traders watched with interest for the results of the latest tender in Egypt, where again, prices rose, especially for Russian wheat, despite the decline in European and U.S. exchanges since the beginning of the week.

the results of the tender in Egypt last week, in which the purchase price increased by $ 8 per week did significantly influence on growth of prices for black sea wheat, which remains the cheapest market for Egypt since the supply from Romania and France are limited and the offer price is much higher.

At yesterday's tender was received 4 proposals of Ukrainian wheat at a price 208,98-219 $/t FOB, which is 1,6-6,5$/t exceeded the original purchase price, and 8 proposals of Russian wheat at prices from 214,87 to 220,3$/t FOB by 2.97 and 8.4$/t price exceeded the previous purchase.

Grain Agency of Egypt, GASC in the result, again chose only two goods the cheapest of the proposed volumes and was purchased 115 thousand tons of Ukrainian soft milling wheat supply 21-31 August at an average price of 211,14 $/t FOB. When the cost of freight of 14.68 $/t corresponds to 225,82 $/t C&F, which is only 0.93 $/t C&F lower than the purchase price at the previous auction last week where it was contracted, 114 thousand tons of Russian wheat.

All purchased 115 thousand tons of Ukrainian wheat protein 12,5% including :

60 thousand tons in the company of Cofco at a price 208,98$ / t FOB and 224,48$ / t CFR;

55 000 t in the company Inerco price 213,50$/t FOB and 227,28$/t CFR.

Analysts believed that in this tender the sellers will slightly reduce the price for black sea wheat because of the growth of receipts of the new crop, but results cleaning show is disappointing average yields in Ukraine and Russia, which leads to reduced sales by the manufacturers, who expect to sell their wheat above the psychological figures of $200/t delivery port while it is now at the level 185-193$/t Black sea ports.

According to the USDA forecast Egypt, the largest wheat importer in the world this season imports about 13 million tonnes, while the state Agency GASC will purchase more than half of this amount.