Egypt purchased 480 thousand tons of Russian wheat from a private trader – Kommersant
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Egypt’s state-owned food procurement company GASC has purchased about 480,000 tonnes of Russian wheat from trader Solaris at a price of about $270 per tonne (C&F) in a private deal. This is reported Reuters with reference to four market participants.
Solaris is one of the largest Russian wheat traders based in Switzerland.
In 2022, Egypt switched from tenders to direct purchases due to supply difficulties that arose after the outbreak of hostilities in Ukraine. According to traders, in some cases the agreed price for the supply of Russian wheat may be below the minimum level set by the Russian government to control domestic prices for wheat. At the same time, market participants note that the minimum price is not legally binding, but suppliers are trying to follow the instructions of the Russian Ministry of Agriculture.
According to the agency, in last week’s tender, all Russian suppliers submitted bids at a floor price set at $270 per ton FOB, with C&F prices ranging from $286.25 to $291 per ton. According to traders, this affected the competitiveness of Russian wheat, and GASC became interested in cheaper wheat from Romania and France.
Egypt is the world’s largest wheat importer, and almost all shipments to the country in recent years have gone through GASC. Last season, Egypt increased its purchases of wheat from Russia by 61.1%, to 8.1 million tons, the Union of Grain Exporters reported. At the tender on August 2, GASC purchased 300,000 tons of Russian wheat at $250 per ton (FOB).
More details – in the material “Kommersant” “Egypt replenished the bins”.
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