In the Egyptian GASC tender for the purchase of wheat, Russia submitted the lowest bid. Egypt, the world's largest wheat importer, plans to increase its strategic grain reserve because it is feared that the closing of markets in the Corona crisis could limit supply.
It is rare for the President of Egypt to personally campaign for the additional import of wheat during the local grain harvest. The state grain purchaser GASC is now looking for wheat for import between 15-25. May and for the period from May 26 to June 5. Contrary to statements by market participants, the offers must be on a fob basis in the last week and the freight should be shown separately and not on a c & f basis.
The lowest offer today is USD 239.95 / t for 60,000 tons of Russian wheat. Only five providers took part in the tender, usually at least twice as many. Possible export restrictions could make the business unpredictable.
For example, Romania has banned its exporters from exporting wheat to non-EU countries by mid-May.In Russia, too, little wheat with 11.5 or 12% protein is said to be stored. Ukraine is no longer in the race either.
The Egyptian Ministry of Supply expects the local wheat harvest to be sufficient for 4.5 months. The strategic reserve would then cover the needs for 7-8 months. The North African country of 100 million people has not seen panic buying during the corona pandemic as it has in Europe. Nevertheless, the authorities want to increase their stocks before Ramadan, which starts in late April, because more food has been bought beforehand.
Millions of Egyptians also depend on the poor food for which subsidized staple foods such as bread, pasta and cooking oil are distributed.
According to the offers now available, Russia and France have submitted the cheapest offers.
The result of the tender is expected for tonight.
Source
Hansa Terminhandel GmbH
