The purchase price of wheat at the tender in Egypt has increased again

Yesterday, the Egyptian state operator GASC purchased Ukrainian and Romanian food wheat with 12.5% protein at a tender and delivered on October 15-25 at a price that is 9 9/ton higher than at the previous auction on August 18.

The number of applications submitted increased from 5 to 7 compared to the previous auction, three applications were submitted from Romania, and two each from Ukraine and Russia. While 5 applications were submitted for the previous tender, and none from Ukraine.

The cheapest on the FOB basis yesterday was Ukrainian wheat, which was offered at 3 304.25/ton, while on the CFR basis the cheapest was Romanian wheat, which had a price of 3 338.1/ton, while Russian wheat was offered at 3 350.75 and C 353.65/ton CFR.

As a result, GASC purchased 180 thousand tons of Ukrainian and Romanian wheat at an average price of F 307.08/ton FOB or 3 340.45/ton CFR, which is 1 10.43/ton FOB or C 8.87/ton CFR higher than at previous auctions.

GASC purchased the following batches of wheat at a tender yesterday:

• 60 thousand tons of Romanian wheat from Grain Export at the price of F 308.5/ton FOB + + 29.6 / ton freight = 3 338.1 / ton CFR,
• 60 thousand tons of Romanian wheat from ADM at the price of F 308.5/ton FOB + + 34.43 / ton freight = 3 342.93 / ton CFR,
• 60 thousand tons of Ukrainian wheat from Inerco Trade at the price of F 304.25/ton FOB + 3 36.08/ton freight = 3 340.33/ton CFR.

It is worth noting that the cost of freight has slightly decreased compared to the previous tender.

Recall that at the previous tender on August 18, GASC purchased 180 thousand tons of Ukrainian and Romanian wheat for delivery on October 5-15 at an average price of 296.65 $/t FOB or 331.58 $ / t CFR, which is 35.16 $/t FOB or 37.84 $/t CFR exceeds the purchase price at the tender on August 2, where only 60 thousand tons of Romanian milling wheat were purchased for delivery on September 24-October 4 at a price of 261.49 $/t FOB or 293.74 $ / t CFR.

Egyptian tenders are always good indicators of prices for Black Sea wheat, so yesterday its futures on the Chicago Stock Exchange rose again:

• September-by 3 3.25 / ton to 3 303.25 / ton,
• December-by 1 1.75/ton to 3 313.5 / ton.