Summary: Today, Egypt’s GASC purchased 180,000 MT of wheat each from France and Romania (for delivery in mid-Mar). This is GASC’s first purchase of French wheat since July 2017. Three weeks ago, GASC purchased 415,000 MT from Russia. Today’s offers did include US SRW at $243, but US freight is more than double the cost of freight from Black Sea origins. The average CIF price that Egypt paid for the wheat was $262.80/MT. That is $1.92/MT below the price paid Jan 09. Five months ago, Egypt purchased wheat at $235/MT (CIF). On a FOB basis, today’s average price accepted was $249.38, which is 18 cents below the price paid on Jan 09 (which was a 4-year high). In the Dec WASDE, USDA left its projection for Egypt’s 2018/19 imports unchanged at a record 12.5 MMT, up 100,000 MT from last year.
After purchasing 415,000 MT of Russian on Jan 09, today, Egypt’s GASC bought 360,000 MT split between France and Romania. No wheat was purchased from Russia We estimate that the average FOB price paid in the tender was $249.38/MT, down $0.18/MT from the price paid at the last tender (see chart below). The last tender saw the highest average FOB price accepted at a GASC tender rise to a 4-year high.
We estimate that the average cost of freight was $13.43/MT, $1.73/MT less than the previous tender (see chart below).
We estimate that the average total CIF price paid at this tender was $262.80/MT, $1.92/MT less than the price paid at the last tender (see chart below).