February 17, 2012

Egypt procures 180,000 tonnes of US wheat

Egypt purchased 180,000 tonnes of US soft red winter wheat for April 11-20 shipment, free-on-board, according a government wheat buyer on Thursday (Feb 16).

Nomani Nomani, vice chairman of the General Authority for Supply Commodities (GASC) said the purchases included 60,000 tonnes of US soft red winter wheat from Venus at US$259/tonne with freight costs of US$26.99/tonne, and 120,000 tonnes of US soft red winter wheat from Bunge at US$259/tonne with freight costs of US$26.99/tonne.

This is GASC's second straight purchase of US wheat in less than a week. Russian wheat was not offered among bids.

Nomani said US wheat offered today was better priced and added he wanted US soft white wheat as well as Australian wheat to also be offered in future Egyptian tenders.

"Russian wheat offers were absent today probably due to export problems and it is an indication that they (the Russians) have reached their exports target," Nomani said.

Russian wheat exporters failed to win any business in Egypt's tender on February 11 and are gradually being priced out of the export market, analysts and producers said.

Since the start of 2011-12 fiscal year on July 1, GASC's purchases have been dominated by Black Sea origin wheat.

GASC has purchased 3.24 million tonnes of Russian wheat, 180,000 tonnes of Romanian wheat, 360,000 tonnes of Ukrainian wheat, 60,000 tonnes of Russian, Ukraine or Kazakh wheat at the seller's option and 60,000 tonnes of Russian or Kazakh wheat at the seller's option since the beginning of July.

It also bought 300,000 tonnes of French wheat and 240,000 tonnes of Argentine wheat as well as 235,000 tonnes of US soft red winter wheat.

In the fiscal year that ended on June 30, 2011, GASC purchased some 5.58 million tonnes of French, the US, Canadian, Australian and Argentine wheat.