A sharp increase in the price of Russian wheat made the Egyptian GASC to buy Ukrainian and Romanian wheat

Our assumption that the imposition of duties and quotas on Russian wheat since February 15, forced sellers of Russian wheat to reduce prices and increase sales volumes at the next tender in Egypt - did not materialize. Since the prices of offers of Russian wheat increased by 14$/t and was non-competitive proposals are still dear Ukrainian and Romanian wheat.

the GASC Tender on 15 December had delivery dates of 01-15 February, i.e. before the introduction went from February 15, but exporters of Russian wheat had to add on the risk of getting on duty to a previously winning prices, which ultimately proved to be the most uncompetitive on FOB basis, and for the first time since late July, lost the bid.

In the end Grain Agency of Egypt GASC tender on 15 December has purchased 235 thousand tons of milling wheat for delivery 01-15 February 2021 at an average price of 270$/t, FOB, or 283,07$/t CFR, which is by 7.83$/t higher than at the previous tender.

Just purchased

the

• 60 KMT of Romanian wheat from company CHS CHS on 270.96 $ / MT FOB with freight rate of 12.37 $ / t = 283.33 $ / t C&F;
• the
• 60 KMT of Romanian wheat from Ameropa company at BV 270.96 $ / MT FOB with freight rate of 12.37 $ / t = 283.33 $ / t C&F;
• the
• 55 thousand tons of Ukrainian wheat from OLAM at 268.98 $ / MT FOB with freight rate of 14.35 $ / t = 283.33 $ / t C&F;
• the
• 60 KMT of Ukrainian wheat from Louis Dreyfus at 268.98 $ / MT FOB with freight rate of 13.33 $ / t = 282,31 $ / t C&F.

it Should be noted that Romania did not win the tenders of GASC 18 Jun 2020.

Russia is the leading supplier of wheat to Egypt in the first place, the State Agency GASC. Since the beginning of season 2020/21 Egypt tenders, GASC purchased 3.91 million tons of milling wheat. From this volume of 3.44 million tonnes, or 88% are in Russia.

the Results of yesterday's tender in Egypt returned to the wheat area of Paris in the "green zone". European traders saw through export duties (although it will take effect in two months) Russian wheat stood on the tender extremely limited number of sentences and on a completely non-competitive prices.

Thus confirmed the opinion of those European experts who said that in the future to the imposition of duties two months of aggressive Russian wheat exports if will be possible, only under previously signed contracts.

March milling wheat quotations on the MATIF exchange in Paris rose €1.00 to 207,25 €/ t (251,84 $/ t).

on Tuesday, the market U.S. wheat played a small part of the losses of the previous day, which he suffered due to fears of aggressive Russian wheat exports in the remaining two months before the introduction of fees. Investors in all three wheat sites was carried out by speculative buying.

March quotes of the American wheat have risen:

the

• soft Wheat SRW in Chicago by $1,19 to 220,37 $ / t
• the
• hard Wheat HRW in Kansas city for $1,38 to 207,97 $ / t
• the
• hard Wheat HRS in Minneapolis by $ 0.74 to 205,58 $ / t