The Egypt state agency for food procurement GASC purchased 235 thsd tonnes of wheat from Russia within the tender, according to the market operators,
The grain is to be delivered to the importer in the periods of 15-30 September and 1-15 October of the current year.
Egyptian state operator GASC held new wheat procurement auctions on 8 August, a week after the last tender, with prices up 5.5% and Russian wheat again winning. Analysts were only expecting an increase in freight costs, but FOB prices also rose by 4.8%.
The number of bids submitted fell from 30 to 18, but bid prices rose from $252-283 to $262-305/t FOB which Russia, Romania and Ukraine participated.
As a result, GASC purchased the cheapest 235,000 tonnes of Russian wheat from Grain Flower (GTCS) with payment within 180 days at an average price of $278.5/t C&F ($262/t FOB + $15.74/t freight), which was 5.5% higher than the purchase price at the 2 August tender, where 360,000 tonnes of wheat were purchased with payment immediately after delivery at $263.68/t C&F ($250/t FOB + $13.84/t freight).
After Ukraine declared the ports of the Russian Federation a military risk zone, freight costs rose by 12.4% and will continue to rise as many shipowners refused to call at Russian ports last week. As a result, the Egyptian GASC will continue to actively buy wheat in the coming weeks.
Source: Graintrade