Romania gets share of latest wheat tender to Egypt

21.12.2017

ROMANIA has won a share in the Egyptian wheat tender, ending Russia’s streak of eight successive winning sales where it was sole tenderer.

According to British commodity news agency Agri­money, the tender offered by Egypt’s state-run buying agency, the General Author­ity for Supply Commodities saw Romania take a 60,000-tonne share in the 295,000-tonne buy, with the rest sourced from Russia.

“That represented the first purchase of non-Russian wheat by GASC in eight tenders, stretching back to August, a period during which it (Egypt) has bought more than 1.5 million tonnes of the grain,” Agrimoney said.

“However, the Romania buy was down to a quirk in shipping costs, rather than any sense of Russia losing its competitiveness in international markets — and loosening its worrying stranglehold on GASC purchases.”

It said there were hopes Egypt would broaden its sources of grain for its annual purchase of about 10 million tonnes of wheat.

Australia has almost been cut out of the market, suppling only 145,000 tonnes in 2016-17 — its lowest level in more than 20 years.

After supplying a record 2.76 million tonnes of wheat in 2003-04, Australia has shipped an average of 375,000 tonnes over the past 10 years.

Australian Export Grain Innovation Centre chief economist Ross Kingwell told The Weekly Times last month Russia now supplied 75 per cent of the Egyptian market.


The Weekly Times

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