European wheat again won the tender in Egypt

Traders from the Russian Federation keep the minimum offer prices at the level of $270/t FOB, which is used by European sellers who sold regular volumes of wheat at the tender in Egypt. In addition, the authorities of the Russian Federation did not allow the sale of 480,000 tons of wheat to Egypt under a contract previously concluded outside the tender at a price below the established minimum, which indicates the efforts of the Russian Federation to raise world prices, taking advantage of the status of the main world supplier of wheat.

On September 20, the Egyptian GASC held another tender for the purchase of wheat, in which European wheat confidently won.

The number of applications submitted for the tender decreased to 28 (compared to 45 applications on August 30 and 32 applications on August 22), especially Russian wheat. Offer prices have also decreased. If at the last tender the cheapest offer was French wheat with a price of $259.42/t FOB, then yesterday the minimum price was $258.77/t FOB for Bulgarian wheat. Exporters from the Russian Federation are forced to adhere to the established minimum price, so all grain was offered at $270/t FOB.

The following applications were submitted to the tender:

• from the Russian Federation – 16 (25 at previous auctions) lots at a price of $270/t FOB ($270/t at tenders on August 30 and 22 and $262-275/t at tender on August 8, 2023),
• from Romania – 3 (8) batches at a price of 261.05-267.7 (261-271.6 at the auction on 08.30.23 and 265-272 at the auction on 08.22.23) $/t FOB,
• from Ukraine – 1 (1) batch at a price of 280 (269.5 at the auction on 08.30.23 and 269.8 at the auction on 08.22.23) $/t FOB,
• from Bulgaria - 2 (42 batches at the price of 258.77 and 268 (263.77 and 267 at the auction on 08.30.23 and 263.7 - 271 at the auction on 08.22.23) $/t FOB,
• from France – 6 (9) batches at a price of 260.9-270 (259.42-267.69 at the auction on 08.30.23 and 266.82-272.82 at the auction on 08.22.23) $/t FOB.

As a result, GASC purchased from Viterra and ADM 120 thousand tons of Romanian wheat for delivery November 1-15 at a price of $255.91/t FOB + freight $16.09/t = $272/t C&F, which is 1.4% lower than at the auction on August 30, where 120,000 tons of French wheat were purchased at a price of $279.49/t C&F and 120,000 tons of Romanian wheat at a price of $275.75/t C&F.