The price of the Egyptian tender over the week increased by 9 $/t
At yesterday's tender, the Egyptian GASC bought 405 thousand tons, mostly Russian wheat for 21-30 November, the average price 230,55 $/t CFR, which is 9 $/t higher than the price last week when it was contracted 295 thousand tons of Russian and Ukrainian wheat at a price 221,65 $/t CFR.
a Sharp increase in prices due to a decrease in the volume of offers of Russian wheat and the increase in world prices due to lower forecast production in Argentina, Canada and Australia.
Russian exporters were reluctant to sell wheat at low prices in the beginning of the season, waiting for higher valuations, while cheap Romanian and Ukrainian wheat market is flooded in July-September.
Experts had expected because of rising prices of Russian wheat Egypt would give preference to French wheat, which is not on this tender once again was the cheapest and offered on FOB for 210,86 $/t
compared with the previous trading bid prices of Russian wheat has grown by 7.78-12 $/t, Ukrainian – 9.3 $/ton, French – 6 $/t
the tender was purchased by the following parties:
the
60 thousand tons of Russian wheat from the LOGISTIC company GARANT at a price of 230,45 $/t CFR (214,95 $/t FOB + 15,5 $/t freight);
60 thousand tons of Russian wheat from GrainExport of the company at a price 230,92 $/t CFR (215,42 $/t FOB + 15,5 $/t freight);
55 KMT of Russian wheat from Posco International price 231,24 $/t CFR (214,25 $/t FOB + 16,99 $/t freight);
55 KMT of Russian wheat at the company HAKAN at a price 230,77 $/t CFR (of 213.85 $/t FOB + of 16.92 $/t freight);
60 thousand tons of Ukrainian wheat at the company Hakan at a price 230,2 $/t CFR (210,9 $/t FOB + 19,3 $/t freight);
60 KMT of French wheat from Glencore at a price 230,86 $/t CFR (210,61 $/t FOB + 20,25 $/t freight).
- 55 KMT of Russian wheat from Cargill at a price 229,42 $/t CFR (212,5 $/t FOB + of 16.92 $/t freight);
U.S. wheat again did not participate in the tender because of too high prices.
Low freight rates from Russian to Egyptian ports allow Russian sellers of wheat to on FOB basis at 2.5-4 $/t more than the Ukrainian and French.
Increasing purchase prices for the tender will affect the world quotes. However, the price growth will increase the volume of proposals, particularly of wheat, for which production forecasts once again raised. The demand won't be very high, since the major importing countries have sufficient stocks of grain.
