The Egyptian state agency GASC today held a tender for the purchase of soft flour, where it acquired 120 thousand tons of Russian grain.
On June 11, 2020, another tender for the supply of wheat for the Egyptian state agency GASC was held.
At the previous tender, held on June 2, 2020, Russian producers were not able to compete in price, as a result, Ukrainian exporters became the winner by bidding at $ 210 / t (FOB).
The minimum delivery price proposed by Russia was $ 213 / t (FOB).
According to experts, exporters are now cautious in bidding since they had a difficult season.
It should be noted that the share of Russian wheat supplies to the Egyptian state agency GASC decreased this year from 61% to 52%. Although these losses were partially replaced by an increase in exports to Turkey: from 4.4 million tons to 5.7 million tons.
The decrease in supplies is due to increased competition from Ukraine, which is increasing exports, and this season will ship 30% more wheat — 2.2 million tons, as well as an increase in deliveries from the EU by 43% compared to last season — 30 , 6 million tons.
The condition for payment by the Egyptian side of the delivered wheat at the tender held on June 11 was a deferment of payment of 180 days. This condition allowed Russia to enter into a contract with a higher price of an average of $ 217.6 / t, plus $ 10 per freight.
At the same time, before bidding, GASC announced that it expects to see on the tender wheat offers from the USA, Canada, Australia, France, Germany, Poland, Argentina, Russia, Kazakhstan, Romania, Ukraine, Bulgaria, Hungary, Paraguay and Serbia. International traders had to separately submit proposals for the cost of sea freight.
In practice, proposals were submitted only by Russian suppliers.
But, in principle, the starting prices of the new season are quite high: $ 205-206 / t (FOB), which, taking into account the costs of transshipment and a small margin of the trader at a rate of 68 rubles / $ 1, gives a price of 13 thousand rubles / ton ( CPT Novorossiysk, excluding VAT).
But while experts do not see a strong potential for their growth. Most likely, growth will continue, but will be quite slow.
