Egypt's state grain buyer, the General Authority for Supply Commodities (GASC), said on Thursday it had bought 240,000 tonnes of Russian and Romanian wheat in a tender for July 1-10 shipment.
Egypt, the world's biggest importer of wheat, bought 60,000 tonnes of Romanian wheat from Nidera, 120,000 tonnes of Russian wheat from Union Co. and 60,000 tonnes of Russian wheat from Vitol, Mamdouh Abdel Fattah, GASC vice-chairman, said.
The wheat was purchased at an average price of $199.28 a tonne on a cost-and-freight basis, he said.
Traders gave the following breakdown of the purchase:
-60,000 tonnes of Romanian wheat from Nidera at $191 a tonne on a free-on-board basis (fob) and $8.20 a tonne freight from National Navigation
-60,000 tonnes of Russian wheat from Union Co. at $190.72 a tonne fob and $8.50 a tonne freight from National Navigation
-60,000 tonnes of Russian wheat from Union Co. at $190.72 a tonne fob and $8.50 a tonne freight from National Navigation
-60,000 tonnes of Russian wheat from Vitol at $191 a tonne fob and $8.50 a tonne freight from National Navigation
Apart from purchases on the international market, Egypt is also in the middle of its local wheat procurement season. The North African country has purchased more than 4 million tonnes of Egyptian wheat since mid-April from its farmers, surpassing a 3.7 million tonne target.
The Egyptian government, which will continue buying local wheat until mid-July, annually fixes a local procurement price for Egyptian wheat that is above global prices in an attempt to encourage farmers to grow the crop.
After this latest tender, Egypt's strategic wheat reserves will last until Nov. 20, Supplies Minister Khaled Hanafi said in a statement.
OFFERS
Traders said the following offers were presented, in dollars a tonne, on a free-on-board basis, unless otherwise stated:
*Vitol: 60,000 tonnes Russian at $191.38
*Nidera: 60,000 tonnes Romanian at $191.49, 55,000 tonnes Russian at $196.95
*Union Co.: 60,000 tonnes Russian at $192.50, 60,000 tonnes Russian at $193
*Louis Dreyfus: 60,000 tonnes Russian at $192.64
*Bunge: 60,000 tonnes Romanian at $193.69
*Ameropa: 60,000 tonnes Romanian at $197.88
*ADM: 60,000 tonnes Polish at $198.90
*Soufflet: 60,000 tonnes French at $198.94 from two ports
*Aston: 60,000 tonnes Russian at $198.98
*Olam: 60,000 tonnes Russian at $199.70
*Glencore: 60,000 tonnes Russian at $202
*Cargill: 60,000 tonnes Russian at $203
FREIGHT
Traders also said the following freight (ocean shipping) offers were made in the tender, in dollars per tonne:
Russia
*National Navigation Company: $8.50
*Mina Dubai: $8.80
*Union Co: $7.50, $8.00
*United: $8.28
*Nidera: $8.85
Romania:
*National Navigation Company: $8.20
*Embros: $8.40
*Venus: $8.29
*Nidera: $8.25
France
*National Navigation Company: $13.10
*Venus: $11.43
*United: $12.45
Poland:
*Mina Egypt: $13.9
