Purchase price in Egypt continues to decline
Yesterday, the Egyptian state operator GASC has purchased the tender 465 thousand tons of Russian and Ukrainian wheat protein 12.5% and delivery 5-15 January 2020 at an average price of 217,9 $/t FOB or 232,35 $/t CFR, which is 0.77 $/t lower than at the previous auction on November 5 when was contracted, 175 thousand tonnes of French and Russian wheat for delivery 15-25 December at a price 215,26 $/t FOB or 233,12 $/t CFR.
On the basis FOB the purchase price for 2,64 $/t exceeded the previous one, however, the decline in freight rates has reduced the cost of wheat delivery.
Prices of Russian wheat on the basis of FOB increased by 0.75-2 $/t, Ukrainian – $1.32/MT, French – 2.36 $/t. This indicates the readiness of the Russian exporters to lower prices for increased sales after failures at the last two tenders. The cheapest on a FOB basis was the proposal of the French wheat – 216,36 $/t, Ukrainian 215,86-217,77 $/t, however, the Russian wheat won thanks to favorable freight.
the Average level of initial offerings of Russian wheat amounted to 233,35 $/MT CFR, Ukrainian – 232,55 $/t CFR.
In the end it was purchased:
60 KMT of Ukrainian wheat from Dreyfus company at a price 232,35 $/t CFR (217,7 $/t FOB + 14,65 $/t freight),
55 KMT of Russian wheat from ADM company at a price 232,35 $/t CFR (217,83 $/t FOB + 14,52 $/t freight),
55 KMT of Russian wheat from the Logistic company Garant at a price of 232,34 $/t CFR (218 $/t FOB + 14,34 $/t freight),
55 KMT of Russian wheat from the company Gemcorp price 231,98 $/t CFR (217,46 $/t FOB + 14,52 $/t freight),
60 thousand tons of Russian wheat from Dawoo company at a price 233,35 $/t CFR (218,88 $/t FOB + of 13.47 $/t freight),
120 thousand tons of Russian wheat from GrainExport of the company at a price 232,35 $/t CFR (218,88 $/t FOB + of 13.47 $/t freight).
- 60 thousand tons of Ukrainian wheat at the company Hakan at a price 232,35 $/t CFR (215,63 $/t FOB + 16,72 $/t freight),
a Decline in prices for Russian wheat was expected, since a reduction in demand, sellers are willing to lower prices to boost exports in the conditions of strong competition with European grain.