Egypt finally attracts sellers in its latest wheat tender

23.09.2016

Egypt finally attracted some selling interest at its latest wheat tender, after a further concession on its quarantine policy, with four sellers participating.

Having U-turned on its zero-tolerance policy on ergot contamination in wheat there were hopes that

But the tender initially looked like being another washout, as sellers sat on their hands.

Shift in testing policy

The sticking point was a shift in policy where wheat would be checked at its point of arrival in Egypt, rather than at its port of origin, which meant that shippers would have to carry the cost of transporting their cargoes, before having to resell them.

This was a concern as Egypt's agriculture ministry has yet to officially approve the change in ergot policy.

But offers emerged, after this policy was amended to allow quarantine testing at origin, although below the volumes seen in tenders last year.

Prices edge up

Union offered three cargoes of Russian wheat, at $178.78 a tonne excluding freight.

Aston offered a cargo at $179 a tonne, Louis Dreyfus offered at $189 tonnes, while Olam offered at $187.79 a tonne.

All cargoes were of 60,000 tonnes, of Russian origin.

These prices were a touch up from the last successful tender before the zero-tolerance policy was instituted, when Union offered Russian wheat at $177.35 a tonne, and Daewoo offered at $178.45 a tonne.

Over the same period Russian fob wheat prices have edged down some $5 a tonne, with SovEcon quoting Black Sea wheat prices at 169.50 a tonne last week.


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