French wheat lowest price in tender from Egypt's GASC - traders

An unusually low number of three trading houses were said to have participated in the tender because of the supply uncertainty and market turbulence following Russia’s invasion of Ukraine. Egypt, often the world's top wheat importer, is working to buy wheat from other regions rather than its major suppliers Russia and Ukraine, whose exports are being disrupted by the fighting in Ukraine.

The lowest offer in the international tender from Egypt's state commodities buyer GASC to buy wheat on Monday was believed to be $389.92 a tonne FOB for wheat sourced from France, traders said in initial assessments.

An unusual offer of wheat sourced from the United States was also submitted. No purchase has been made and the result is expected later on Monday, they said. An unusually low number of three trading houses were said to have participated in the tender because of the supply uncertainty and market turbulence following Russia’s invasion of Ukraine.

Egypt, often the world's top wheat importer, is working to buy wheat from other regions rather than its major suppliers Russia and Ukraine, whose exports are being disrupted by the fighting in Ukraine. Russia provided around 50% of Egypt’s wheat imports in 2021 and Ukraine 30%, grain industry data shows.

GASC’s tender sought wheat for shipment between April 13-26. Traders said these offers were presented at the tender including cost and freight (C&F), which includes freight or ocean shipping costs, with FOB price, freight cost and C&F price: - Soufflet 60,000 tonnes from France at $389.92 FOB plus $39.30 freight totalling $429.22 a tonne c&f - Viterra 60,000 tonnes from France at $399.00 FOB plus $39.30 freight totalling $438.30 a tonne c&f - Cargill 60,000 tonnes from United States (hard red winter) at $447.00 FOB plus $70.00 a tonne freight totalling $517.00 c&f

"The fighting in Ukraine is disrupting wheat exports from both Russia and Ukraine," one European trader said. “It does not look like the fighting in Ukraine will be over quickly so importers may have to shift to other origins.” "There is a lot of uncertainty in the market and trading houses are unwilling to offer."

GASC had cancelled its last wheat tender on Feb. 24 following low turnout from major exporters after Russia's invasion of Ukraine. In its last wheat purchase on Feb. 17, GASC bought 180,000 tonnes after receiving about 20 offers