Egyptian GASC Again Purchased 460 Thousand Tons of European Wheat at Reduced Prices, Avoiding Expensive Russian Wheat
The Egyptian General Authority for Supply Commodities (GASC) held its second tender in June for wheat procurement on June 11. This tender saw a sharp increase in wheat offerings and a decrease in offer prices due to the change in payment terms from 270 days in the previous tender to immediate payment upon delivery.
Notably, there was a sharp increase in the number of offers for Romanian, French, and Ukrainian wheat, as well as a decrease in the average offer price to $263.16/t FOB, which is $26.51/t cheaper compared to the tender a week ago. The cheapest again was Ukrainian wheat at $243/t FOB, which is $28.75/t cheaper than a week ago.
The number of Russian wheat offers submitted for the tender also increased, but their offer prices decreased less significantly – by $15-20/t, and remained higher than the prices for French wheat.
The following bids were submitted for the tender (all with immediate payment):
- 12 (8 in the June 4 tender) batches of Russian wheat at $265 and two bids at $270 (285-289 with 270-day payment in the June 4 tender) $/t FOB,
- 13 (7) batches of Romanian wheat at $256.7-285 (282-299) $/t FOB,
- 7 (4) batches of French wheat at $258.47-265 (291.7-293.5) $/t FOB,
- 5 (2) batches of Ukrainian wheat at $243-268.5 (271.75 and 292) $/t FOB,
- 2 (3) batches of Bulgarian wheat at $251.3 and 255.77 (290-297.5) $/t FOB.
As a result, GASC purchased 460 thousand tons of European wheat for delivery on August 1-20 and immediate payment upon delivery at an average price of $268.83/t C&F, which is $33.38/t cheaper than on June 4, namely:
- 120 thousand tons of Romanian wheat from AMS Ameropa at $251.85/t FOB + $17.8/t freight = $269.65/t C&F for delivery on August 1-20,
- 60 thousand tons of Romanian wheat from LDC at $251.85/t FOB + $17.8/t freight = $269.65/t C&F for delivery on August 1-10,
- 60 thousand tons of Romanian wheat from CHS at $251.85/t FOB + $17.8/t freight = $269.65/t C&F for delivery on August 1-10,
- 60 thousand tons of Ukrainian wheat from ADM at $233.45/t FOB + $36.2/t freight = $269.65/t C&F for delivery on August 11-20,
- 60 thousand tons of Ukrainian wheat from LDC at $233.45/t FOB + $36.2/t freight = $269.65/t C&F for delivery on August 11-20,
- 50 thousand tons of Bulgarian wheat from Buildcom at $250/t FOB + $14.95/t freight = $264.95/t C&F for delivery on August 1-10,
- 50 thousand tons of Bulgarian wheat from Cargill at $250/t FOB + $17.80/t freight = $267.80/t C&F for delivery on August 1-10.
It is worth noting that in previous tenders, GASC purchased the following wheat batches:
- June 4 – 470 thousand tons of European wheat for delivery on July 5-25 and payment within 270 days after opening the letter of credit at an average price of $302.2/t C&F,
- May 8 – 420 thousand tons for delivery in June and payment within 270 days at a price of $279.22/t C&F,
- April 16 – 120 thousand tons of Ukrainian wheat for delivery on May 20-30 and payment within 270 days at an average price of $255.98/t C&F,
- March 20 – 120 thousand tons of Bulgarian and Romanian wheat for delivery on May 20-30 and payment within 270 days at an average price of $253.27/t C&F,
- February 15 – 120 thousand tons of Ukrainian wheat at $218.1/t FOB + $36.9/t freight = $255/t C&F and 60 thousand tons of Romanian wheat at $237.4/t FOB + $17.6/t freight = $255/t C&F with payment within 270 days,
- January 17 – 360 thousand tons of wheat for delivery on March 15-30 at an average price of $285.48/t C&F,
- January 9 – 420 thousand tons of predominantly Russian wheat for delivery on February 29 – March 11 at an average price of $285.05/t C&F and payment within 270 days,
- December 19 – 480 thousand tons of Russian wheat for delivery in February at $265/t FOB + $22.4/t freight = $287.4/t C&F with payment within 270 days,
- December 5 – 180 thousand tons of wheat at a price of $275.17/t C&F.
