The purchase price at the tender in Egypt decreased again thanks to the cheap offers of Russian wheat

On July 16, the Egyptian GASC held another tender for the purchase of wheat, where it purchased a significant batch of 770,000 tons. Prices for Russian wheat this time were lower than for European wheat.

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

• 19 (9 at auction on June 25) batches of Russian wheat at a price of $226-238 (227-250)/t FOB,
• 10 (10) lots of Romanian wheat at a price of $232-250 (232-260)/t FOB,
• 4 (5) batches of French wheat at a price of $242-249.85 (242.78-244.76)/t FOB,
• 1 (4) batch of Ukrainian wheat at a price of $239 (233-245)/t FOB,
• 4 (3) batches of Bulgarian wheat at a price of $229-234.99 (235-246.95)/t FOB.

The number of Russian wheat offers increased sharply, while Ukrainian wheat decreased, and the average price of offers increased compared to the June 25 trading by $3.24/t to $243.82/t FOB.

The offer of Russian wheat became the cheapest with a price of $226/t FOB, which is $1/t lower than the purchase price at the June 25 tender, which indicates the readiness of Russian exporters to lower prices to win the auction.

As a result, GASC purchased 770,000 t of wheat for September 11-30 delivery and direct payment at an average price of $221/t FOB or $241.07/t C&F, which is $5.52/t lower than at the June 25 auction. namely:

• 720 thousand tons of Russian wheat from the companies ME Solaris, Cereal Crops Trading, Aston Agro Industrial, Viterra at an average price of $221 (227)/t FOB + $20.36/t freight = $241.36 (246)/t C&F,
• 50 thousand tons of Bulgarian wheat from Buildcom at a price of $221 (227.5)/t FOB + $16.6/t freight = $237.6 (244)/t C&F.

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

• June 25 – 470 thousand tons of Romanian, Bulgarian, Ukrainian and Russian wheat with delivery from August 21 to September 10 and payment immediately after delivery at an average price of $246.59/t C&F,
• June 11 – 460,000 tons of European wheat with delivery August 1-20 and payment after delivery at an average price of $268.83/t C&F,
• June 4 – 470 thousand tons of European wheat with delivery July 5-25 and payment in 270 days 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 thousand 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.