The purchase price of wheat at the tender in Egypt again increased by 8 8.3 / ton

Yesterday, the state-owned Egyptian Agency GASC held the second tender in October for the purchase of food wheat, the purchase price of which rose again following the increase in world prices.

Compared to the previous auction, the number of submitted bids increased to 12, in particular, Russian wheat – 6 pieces, Ukrainian – 4,Romanian – 2. the cheapest on the FOB basis was Russian wheat, which was offered at 3 327-341.99/ton, while the average offer price of Ukrainian wheat was 3 327.5-333.25/ton, and Romanian wheat – 328.36-332.5 f/ton FOB.

At the tender, GASC purchased 360 thousand tons of food wheat for delivery on December 1-10 at an average price of F 328.05/ton FOB or С 359.94/ton C&F, which is 6 6.54/ton FOB and C 8.34/ton CFR higher than at the previous auction on October 6, when 240 thousand tons of wheat were purchased, and C 15/ton CFR higher than at the tender on September 8.

The following lots were purchased at the tender:

• 60 thousand tons of Russian wheat from GTCS at the price of F 327.0/t FOB + freight 2 29.50 / T = 3 356.5 / T s & F,
• 120 thousand tons of Russian wheat from Solaris Commodities SA at the price of 3 328.36 / t FOB + freight 3 32.64 / T = 3 361.00 / T s & F,
• 60 thousand tons of Ukrainian wheat from Nibulon at the price of 3 327.5 / t FOB + freight 3 32.95 / T = 3 360.45 / T s & F,
• 60 thousand tons of Ukrainian wheat from Olam at the price of F 328.7/t FOB + freight 3 33.2 / T = 3 361.9 / T s & F,
• 60 thousand tons of Romanian wheat from Viterra at the price of F 328.36/t FOB + freight 3 31.50/T = 3 359.89 / T S&F.

The cost of freight increased slightly, but remains lower than it was in August.

Recall that at the tender on October 6, GASC purchased 240 thousand tons of Russian and Romanian wheat for delivery on November 11-20 at an average price of F 320.51/ton FOB or С 351.6/ton C&F, which is 7 7.42/ton FOB and C 6.67/ton CFR higher than at the previous auction on September 8.

And on September 8, GASC purchased 300 thousand tons of Ukrainian and Russian wheat for delivery on October 25 - November 3 at an average price of F 313.09/ton FOB or 3 344.93/ton C&F, which is 6 6/ton FOB and C 4.48/ton CFR higher than at the previous auction on August 30, when 120 thousand tons of Romanian and 60 thousand tons of Ukrainian wheat were contracted.

The increase in the supply of Russian wheat at the tender indicates that prices have already reached the level at which Russian farmers are increasing sales, especially given the reduction in supply from Romania. Ukraine is also reducing supply due to logistics problems in ports amid a high corn harvest.