Polish wheat offer outperforms Blacksea prices at Egyptian bidding
Caio Alves
Published 2020년 9월 16일
Egypt's state grain agency, known as GASC, opened an international tender yesterday for the purchase of an unspecified volume of wheat for delivery between November 10 and 20. The auction results are expected to be released today.
According to traders, GASC offered payments for the grain through letters of credit that guarantee the discharge within 180 days.
Amidst 12 offers, the Polish wheat was the cheapest, costing $ 228.43 a ton. In addition to this, nine offers of Russian wheat were made, with prices ranging from US $ 234.99 to US $ 244.10 per ton, and two of Ukrainian wheat, with prices fixed at US $ 238.94 per ton and US $ 245 per ton. All prices are FOB basis.
This is the twentieth auction that the state company holds this year. In its most recent bid, on September 3, GASC purchased 55,000 tonnes of Russian wheat in a shipment costing $ 225 a ton, with an additional $ 15.50 a ton to cover freight costs. At the time, analysts suggested that the high prices offered made GASC to grow reluctance on to buying more, as the volume was significantly less than the usual purchased at this time of the year.
Egypt is the world's largest buyer of wheat and, therefore, its purchases are important for the formation of grain prices. The United States Department of Agriculture (USDA) projects that the country will import 12.5 million tons of wheat in the 2020/21 season.
According to traders, GASC offered payments for the grain through letters of credit that guarantee the discharge within 180 days.
Amidst 12 offers, the Polish wheat was the cheapest, costing $ 228.43 a ton. In addition to this, nine offers of Russian wheat were made, with prices ranging from US $ 234.99 to US $ 244.10 per ton, and two of Ukrainian wheat, with prices fixed at US $ 238.94 per ton and US $ 245 per ton. All prices are FOB basis.
This is the twentieth auction that the state company holds this year. In its most recent bid, on September 3, GASC purchased 55,000 tonnes of Russian wheat in a shipment costing $ 225 a ton, with an additional $ 15.50 a ton to cover freight costs. At the time, analysts suggested that the high prices offered made GASC to grow reluctance on to buying more, as the volume was significantly less than the usual purchased at this time of the year.
Egypt is the world's largest buyer of wheat and, therefore, its purchases are important for the formation of grain prices. The United States Department of Agriculture (USDA) projects that the country will import 12.5 million tons of wheat in the 2020/21 season.
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