French suppliers substantially raised their wheat prices at a tender offer held Thursday by the General Authority for Supply Commodities (GASC), according to a GASC official.
The official, who requested anonymity, attributed the price hike to Russia's decision last month to ban wheat exports until 2011.
The source went on to say that France had offered 180,000 tons of wheat at US$334.5 per ton, including shipping, representing a US$10 increase on last week's prices. He also noted that American and Canadian wheat prices had been lower than those offered by France.
On Thursday, the GASC bought 55 tons of American soft white winter wheat from the Louis Dreyfus Company at US$273.75 per ton and 60,000 tons of Canadian wheat from the same company at US$295.70 per ton, not including shipping costs. The wheat is scheduled to be delivered to Egypt between 1 and 10 November.
Wheat futures have jumped on international markets recently amid fears of waning production levels in Russia, Kazakhstan and East Ukraine as a result of persistent drought. According to the Bloomberg news agency, prices for wheat scheduled for delivery in December have risen by 1.1 percent to reach $7.44 per bushel on the Chicago Board of Trade.
According to the Russian Ministry of Agriculture, meanwhile, farmers in Russia have sown 5.8 million hectares (14.3 million acres) with grain so far this season, compared with only 10.8 million hectares in the same period last year.
Translated from the Arabic Edition.
