Egypt’s GASC books 120,000 mt of December wheat as new rules expected

Egypt’s state food procurement arm GASC booked 120,000 mt of wheat for delivery between December 15-30 at $210/mt CFR, market sources said Thursday.

At its previous tender on October 20, GASC bought 230,000 mt of Russian-origin wheat at $198.35-$198.75/mt FOB, or $213.82-$214.65/mt CFR.

Offers heard Wednesday afternoon from market sources included 11 Russian origin cargoes priced at $195.30-$199.97/t FOB, and three Romanian-origin cargoes at $204-205.84/mt FOB. The most competitively priced delivered offers were all Russian, ranging from $210-$213.68/mt CFR.

Russian wheat continues to outstrip all other origins at GASC tenders this marketing year. Thursday's purchase took total Russian-origin sales to 2.66m mt, 76% of GASC’s total imports.

After a protracted series of disputes with suppliers, Egypt’s ministries of supply and agriculture have sought to clarify guidelines on phytosanitary requirements for grain imports. New rules are expected to be announced in the coming days aimed at reducing the premium Egypt has been forced to pay a risk premium over prevailing global wheat prices.