The purchase price of the Egyptian tender was declined because of increased competition
Yesterday, the Egyptian GASC bought at the tender 350 thousand tonnes of food wheat for October 1-10, including 230 thousand tons of Russian and 60 KMT of French and Ukrainian grain.
Unexpected was the sharp decline in the price of the offer of French wheat at $6 per t of 193.6 to $/t FOB, whereby the purchase price of the tender was 1.6 $/t lower than at the auctions two weeks ago, when she was 215,09 $/t CFR.
Prices of Russian and Ukrainian wheat were 199,07-205 $/t FOB, in line with the proposals in the previous tender, but by reducing the cost of freight on the basis of CFR has dropped 1.5-4 $/ton to 216,55-217,37 $/t. the road freight French wheat on the basis of CFR had a higher price.
a Sharp increase in the volume of purchases of wheat from Russia, which is the main supplier of grain to Egypt, testifies to the readiness of the Russian sellers to lower prices to boost exports under the pressure of competition from European wheat, the reinforcement of which confirms that GASC yesterday for the first time since February, purchased French wheat.
Only the tender was purchased:
60 thousand tons of Russian wheat at the company Garant Logistics at a price 199,4 $/t FOB + freight 16,47 = 215,87 $/t CFR;
60 thousand tons of Russian wheat from Posco International price 199,4 $/t FOB + freight loss of 16.85 = 216,25 $/t CFR;
60 KMT of Ukrainian wheat company LDC at a price 198,35 $/t FOB + freight 18.25 =to 216.6 $/t CFR;
55 KMT of Russian wheat from Posco International price 199,4 $/t FOB + freight 17,22 = 216,62 $/t CFR;
55 KMT of Russian wheat from Posco International price 199,4 $/t FOB + freight 17,90 = 217,3 $/t CFR.
- 60 KMT of French wheat from Glencore at a price of 193.6 $/t FOB + freight 21,49 = 215,09 $/t CFR;
in General for delivery in 2019/20 MG GASC already bought 2.13 million tonnes of wheat (935 thousand tons of Russian, 660 thousand tons of Romanian, 475 thousand tons of Ukrainian, 60 KMT of French).
