Egypt buys 120,000 Tons of U.S, Canadian Wheat: GASC

Egypt bought 120,000 metric tons of U.S. and Canadian soft red winter wheat after a tender today, Nomani Nasr Nomani, the vice chairman of the General Authority for Supply Commodities, said.

The U.S. wheat cost $ 261.50 a ton from Venus International and the Canadian grain was $263.50 a ton from Louis Dreyfus, Nomani said. The tender was for at least 60,000 tons of wheat for shipment May 1 to May 10, Nomani said yesterday.

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 11 February and are gradually being priced out of the export market, analysts and producers said.

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

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

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

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