The lowest free-on-board (FOB) offer presented at an Egyptian state purchasing tender for wheat on Wednesday was $259.42 per metric ton for 60,000 tons of French wheat, traders said.
The lowest offer when the shipping cost is included was $275.75 per metric ton for 60,000 tons of Romanian wheat on a cost and freight basis, traders added.
The offer was presented by Soufflet.
Egypt’s state grains buyer, the General Authority for Supply Commodities (GASC), is seeking wheat in an international tender for shipment Oct. 5-20 and/or between Oct.25 and Nov.10 and/or Nov. 15-30
GASC asked suppliers to submit FOB offers with payment to be made at sight using funding from the International Islamic Trade Finance Corporation (ITFC).
Traders told Reuters that Russia’s unofficial cap on prices, believed to be about $270 a ton, has reduced the competitiveness of Russian wheat in the tender.
“It again looks like the Russian government’s unofficial minimum export price has kept Russian price offers high and allowed France to get a look in,” one German trader said.
“It is highly unusual for a series of trading houses to offer exactly the same FOB price in GASC’s tenders.” Russia has never officially confirmed its minimum export price but is said traders have been imposing it to prevent Russian domestic wheat prices from rising.
Source: Hellenic Shipping News
