The purchase price of the Egyptian tender went up again

During September, global wheat prices have skyrocketed, especially in the black sea, which still remains the cheapest that is not usual for this period, and even in a fairly balanced world balance. Owing to the active solicitation of purchases of the last weeks the black sea wheat has risen by 25-30 $/t 235-245 $/t FOB and has become more expensive than European.

At yesterday's tender in Egypt, traders were hoping to see the continuation of the competitive struggle between Russian and European wheat after last week's GASC bought a batch of Polish wheat price 228,4 $/t FOB, which was 7 $/t FOB, lower than for Russian wheat. But road freight, and the reluctance of European sellers expect payment within 180 days limits the number of proposals of the European wheat, so that the proposals of Russian wheat has risen again.

the Russian wheat in yesterday's tender was offered for 7 to 17 $/t more expensive than a week ago - at 242-252 $/t FOB, French – at 244,86-246,5 $/t FOB, but the only offer Ukrainian wheat had a price of 248 $/t FOB.

With freight rate for French wheat to 17.5 $/t price was $ 262.5 USD-264 $/t C&F, while the black sea while freight 12,9-14,98 $/t came out on 256,55-266,98 $/t C&F. But due to increased competition, five of the six sellers of Russian wheat agreed to a discount from the initial price offerings.

as a result of GASC tender on September 22, acquired 405 thousand tons of Russian milling wheat for delivery 21-30 November at an average price of 242,82 $/t FOB or 256,48 $/t CFR, which is 9 $/t FOB or 7.13 $/t CFR more than a week ago, namely:

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55 kt in the company GTCS for the price 242 $/MT FOB or 256,55 $/t CFR,

55 thousand tonnes from Cargill at a price of 243 $/t FOB or 256,55 $/t CFR,

55 thousand tonnes from Glencore at a price 243,03 $/t FOB or 256,45 $/t CFR,

60 kt in the company Agro AST for the price 242,8$/t FOB or 256,55 $/t CFR,

60 kt in the company of Hakan at the price of 243 $/t FOB or 255,9 $/t CFR.

• 120 kt in the company's Grain Export at a price 242,8 $/t FOB or 256,55 $/t CFR,

Payment will be made 180-day letter of credit.

At the previous tender on September 16 GASC bought 235 thousand tons of Russian and Polish wheat supply 10-20 November at an average price 233,8 $/t FOB or 249,35 $/t CFR.

According to the USDA, Egypt is the world's largest importer of wheat in 2020/21 MG will purchase 13 million tonnes of wheat, half of which will be purchased on tenders state operator GASC.