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Ukrainian wheat offered lowest in Egypt’s GASC tender

The lowest offer in the international tender from Egypt’s state commodities buyer GASC to buy wheat on Wednesday was $231.77 a tonne FOB for wheat sourced from Ukraine, traders said.

The offer was submitted by trading house Dreyfus. But including ocean shipping costs, Russian wheat was offered lowest at $245.50 a tonne c&f, they said.

No purchase has been made and a result is expected later on Wednesday, they said.

The tender sought wheat for shipment between Feb. 18-29.

Traders said they believed these offers were made on an FOB basis in dollars per tonne:

 Dreyfus 60,000 tonnes $231.77
 Nibulon 60,000 tonnes $234.50
 Garant Logistic 60,000 tonnes $231.95
 Gemcorp         55,000 tonnes $232.01
 Solaris         60,000 tonnes $239.32
 Grain Export    60,000 tonnes $232.87
 Glencore        55,000 tonnes $237.22
 Glencore (1 port loading) 60,000 tonnes $233.28
 Ameropa 60,000 tonnes $232.79
 Cofco 60,000 tonnes   $233.00

Traders said these c&f offers were made including freight (ocean shipping) costs:

 Garant Logistics Russian   $231.95 plus $13.55 freight totalling $245.50
 Ameropa          Romanian  $232.79 plus $12.80 freight totalling $245.59
 Cofco            Romanian  $233.00 plus $12.80 freight totalling $245.80
 Grain Export     Russian   $232.87 plus $13.55 freight totalling $246.42
 Dreyfus          Ukrainian $231.77 plus $14.82 freight totalling $246.59
 Gemcorp          Russian   $232.01 plus $15.15 freight totalling $247.16
 Glencore         French    $233.28 plus $16.20 freight totalling $249.48

No wheat from the United States or South America was offered, traders said.

In its most recent international wheat tender on Dec. 10, GASC bought 355,000 tonnes of Russian, Romanian, Ukrainian and French wheat for Feb. 5-15 shipment.

Traders confirmed GASC tender regulations had been changed to allow travelling delegations of Egyptian agricultural inspectors to resume checks of wheat cargoes purchased during state tenders at the loading port for wheat at the country of origin, as reported by Reuters on Dec. 18.

The practice was controversial in past years as the involvement of additional teams of Egyptian inspectors had led to conflicting judgement of wheat quality and rejections of shipments of wheat.

“Uncertainty about what the inspections mean coupled with the Christmas holidays in Russia and elsewhere in the Black Sea region meant some grain export companies were not participating in the GASC tender today,” one trader said.
Source: Reuters (Reporting by Maha El Dahan, Michael Hogan and Nadine Awadalla; editing by Jason Neely)

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