At the third tender in Egypt in June, the purchase price of wheat fell sharply

Egypt's state food procurement agency GASC held its third wheat procurement tender this month on June 25, buying a large batch of 470,000 tonnes as bid prices fell sharply.

The following applications were submitted to the tender (all with direct payment):

• 9 (12 at the auction on June 11) batches of Russian wheat at a price of 227-250 (265-270 at the tender on June 11) $/t FOB,
• 10 (13) batches of Romanian wheat at a price of $232-260 (256.7-285)/t FOB,
• 5 (7) lots of French wheat at a price of $242.78-244.76 (258.47-265)/t FOB,
• 4 (5) batches of Ukrainian wheat at a price of $233-245 (243-268.5)/t FOB,
• 3 (2) batches of Bulgarian wheat at a price of 235-246.95 (251.3 and 255.77) $/t FOB.

Despite the decrease in the number of offers, their average price decreased to $240.58/t FOB, which is $22.58/t lower than the June 11 auction price and $49.09/t than the June 4 auction price.

The cheapest was the offer of Russian wheat at the price of $227/t FOB, which is $16/t lower than the price at the June 11 tender. For the first time in a year, Russian wheat was offered at different prices, as the Russian authorities allowed local companies to compete with each other.

As a result, GASC purchased 470 thousand tons of wheat for delivery from August 21 to September 10 and with payment immediately after delivery at an average price of $246.59/t C&F ($22.24/t lower than the June 11 tender and 55 .62 $/t lower than at the June 4 tender), in particular:

• 120,000 tons of Romanian wheat from AMS Ameropa and LDC for delivery on September 1-10 at a price of $230 (251.85)/t FOB + $17.6/t freight = $247.6 (269.65)/t C&F ,
• 60,000 tons of Romanian wheat from LDC for delivery on August 21-31 at a price of $229.5 (251.85)/t FOB + $17.6/t freight = $247.1 (269.65)/t C&F,
• 60,000 tons of Ukrainian wheat from the Nibulon company for delivery on September 1-10 at a price of $230 (233.45)/t FOB + $17.6/t freight = $247.6 (269.65)/t C&F,
• 50,000 tons of Bulgarian wheat from Buildcom for delivery on August 21-31 at a price of $227.55 (250)/t FOB + $16.45/t freight = $244 (264.95)/t C&F,
• 180,000 tons of Russian wheat from Olam, Cereal Crops Trading and Aston Agro Industrial for delivery on August 21-31 at a price of $227/t FOB + $19/t freight = $246/t C&F.

It will be recalled that GASC purchased the following batches of wheat at previous tenders:

• June 11 – 460,000 tons of European wheat with delivery on August 1-20 and payment immediately after delivery at an average price of $268.83/t C&F,
• June 4 – 470,000 tons of European wheat with delivery July 5-25 and payment 270 days after the opening of the letter of credit at an average price of $302.2/t C&F,
• May 8 – 420,000 t with delivery in June and payment in 270 days at a price of $279.22/t C&F,
• April 16 – 120,000 tons of Ukrainian wheat with delivery on May 20-30 and payment in 270 days at an average price of $255.98/t C&F,
• March 20 – 120,000 tons of Bulgarian and Romanian wheat with delivery on May 20-30 and payment in 270 days at an average price of $253.27/t C&F,
• February 15 – 120,000 tons of Ukrainian wheat at a price of $218.1/t FOB + $36.9/t freight = $255/t C&F and 60,000 tons of Romanian wheat at a price of $237.4/t FOB + 17.6 $/t freight = $255/t C&F with payment in 270 days,
• January 17 – 360,000 tons of wheat for delivery on March 15-30 at an average price of $285.48/t C&F,
• January 9 – 420,000 tons of mostly Russian wheat for delivery February 29-March 11 at an average price of $285.05/t C&F and payment in 270 days,
• December 19 – 480,000 tons of Russian wheat for delivery in February at a price of $265/t FOB + $22.4/t freight = $287.4/t C&F with payment in 270 days,
• December 5 – 180,000 tons of wheat at a price of $275.17/t C&F.