The Egyptian tender was reminded of the competitors of the black sea wheat
Traders were looking forward to the results of yesterday's tender for purchase of soft milling wheat, who conducted the Egyptian GASC, amid a sharp rise in price of black sea wheat by increasing its purchases by Turkey, Saudi Arabia and other importers.
At the previous tender on 3 September GASC bought only one party of Russian wheat with a volume of 55 thousand t 5-15 November at a price of 225 $/t FOB or 240,50$/t CFR because the proposals of the Russian and Ukrainian wheat went up considerably.
Dimensions GASC, as well as other grain market participants expected a decline in world wheat prices after the publication of the "bearish" USDA report, however, the markets responded to strong demand by importers and not on the fundamental factors in the form of increased production and world reserves to record levels.
In two weeks the price of black sea wheat has increased by 15-20 $/t and exceeded 230 $/t FOB, but the bid price does not exceed 225 $/t FOB, though buyers raised prices in order to acquire the necessary party.
In yesterday's Egyptian tender bid prices of Russian wheat has grown to 235 $/MT FOB and above, Ukrainian – 238,94-245 $/MT FOB that 10-15 $/t higher than the previous proposal of the tender. The tangible competition of black sea wheat was Polish, also participated in the tender. The last time GASC bought Polish wheat in October 2015.
In the end, the tender, GASC bought only 235 thousand tons of wheat for delivery 10-20 November at an average price of 233,80 $/t FOB and 249,35 $/t CFR, namely:
the
60 thousand tons of Russian wheat from Posco price 234,98 $/t FOB or 248,24 $/t CFR,
55 KMT of Russian wheat from Dreyfus company at a price 235,98 $/t FOB or 250,82 $/t CFR,
60 thousand tons of Polish wheat from the company Casillo at a price 228,43 $/t FOB or 249,23 $/t CFR.
- 60 thousand tons of Russian wheat from company Solaris at a price 235,98 $/t FOB or 249,23 $/t CFR,
compared to the previous trading, the average purchase price of delivery to the port increased by 9 $/t. the Growth rates constrains the competition of the black sea wheat from Europe, which, despite the more expensive freight was much cheaper on FOB basis.
