GASC buys Russian wheat as delivered price continues to rise

Egypt’s state-run grains buyer GASC was back in the market Wednesday, buying 120,000 mt of Russian wheat for 0.6% more than its previous tender.

AOS and El Wehda agreed to sell two 60,000 mt cargoes for delivery March 22-April 1 at $223.50/mt CFR, up from $222.08/mt CFR it paid on February 9.

Origin prices saw a small decrease, however, as GASC paid $208/mt FOB for the cargoes –down from an average $208.08/mt at its previous tender when it booked Russian and Romanian wheat.

Russian wheat makes up about three quarters of the 5.6 million mt GASC has bought so far in the 2017/18 marketing year, having come to dominate due to the sheer size of this year’s crop.

While among the most competitive origins globally, tightening supply and continued demand has led the Agricensus Russian 12.5% protein wheat assessment to rise 4.2% since the previous tender to $203.50/mt FOB Novorossiysk, potentially opening the door to further non-Russian cargoes.