Russian sellers lift prices at Egyptian wheat tender

23.01.2017

The prices demanded by sellers of Russian wheat at the latest Egyptian tender rose sharply.

Gasc, the state grain buyer for the world's top wheat importer, bought a cargo of Ukrainian wheat at Friday's tender.

But the state grain buyer bought just one 60,000 tonne cargo, compared to the hundreds of thousands of tonnes it has taken in recent tenders.

Gasc paid $188.74 a tonne excluding freight for Ukrainian wheat.

This was a touch up from the last time Gasc bought Ukrainian wheat, back in December, when it paid 187.00 a tonne excluding freight.

Higher rouble lifts prices

But more noticeable was a rapid rise in the prices offered for Russian cargos.

Russian wheat was tendered for between $194.75 and $196.95 a tonne.

In comparison, last Saturday Gasc bought Russian wheat for between $187.50 and $187.95 a tonne.

Russian exports have been hampered by the strength of the rouble, as well as poor weather in Black Sea ports.

The rouble touched its strongest level against the dollar in a year-and-a-half this week, although it has eased a little from its Tuesday peak.

Participation recovering, gradually

Romanian wheat was offered at $196.95 a tonne, up from the $189.65a tonne from that destination offered last Saturday.

GASC received offers from eight suppliers, with six for Russian wheat and one each for Ukrainian and Romanian wheat.

The number of companies willing to participate in Gasc tenders is rising, but participation is still significantly decrease since Egypt's ergot-policy debacle, which saw many sellers avoid shipping to Egypt due to fears of rejected cargoes.


agrimoney

Readers choice: TOP-5 articles of the month by UkrAgroConsult