Egypt receives offers from five suppliers at wheat tender: GASC

Egypt’s state grain buyer GASC has received Thursday offers from five suppliers at its international wheat purchasing tender, Cairo-based traders said, as some suppliers continued to stay away due to lack of certainty over wheat inspection rules.

The lowest offer was at $179.55 a tonne free-on-board (FOB) for 60,000 tonnes of Russian wheat and was presented by Cargill.

Results for the tender are expected later on Thursday.

GASC is seeking the wheat for Nov. 21-30 shipment.

Traders said the number of suppliers making offers in Egypt tenders was still low compared to the average of 15 suppliers before the world’s largest importer was hit by concerns over its wheat import specifications.

Egypt reversed a controversial ergot fungus specification in August, ending a long saga that had reduced trader interest in supplying it with wheat. The reversal has helped GASC resume its purchases.

However, controversy over its imported wheat inspection rules at ports of origin is keeping some suppliers away as Egypt cancelled its system of sending delegates from its quarantine authority abroad to inspect the wheat ahead of its arrival.

Swiss-based inspection firm SGS said on Wednesday it had not had discussions with Egypt about checking wheat import cargoes, despite the Egyptian authorities saying the company had been selected to conduct the inspections. This has added to confusion about inspection rules.

“It is still a relatively low participation for a GASC tender because of continuing worries in Egypt about tender rules but the numbers are gradually increasing,” one European trader said.

“The number is probably enough to achieve a purchase,” he said.

Traders said the following offers were made in dollars per tonne on an FOB basis:

* Cargill: 60,000 tonnes Russian wheat at $179.55

* ADM: 60,000 tonnes Romanian wheat at $187.01

* ECTP: 60,000 tonnes Russian wheat at $179.95

* Aston: 60,000 tonnes Russian wheat at $186

* Alegrow: 60,000 tonnes Russian wheat at $184.65

Traders also said the following were the offers made in dollars a tonne on a cost and freight basis:

*Cargill: 60,000 tonnes Russian wheat at $179.55 FOB and $9.74 freight equating to $189.29 C&F

*ECTP: 60,000 tonnes Russian wheat at $179.95 FOB and $9.74 freight equating to 189.69 C&F

*Alegrow: 60,000 tonnes Russian wheat at $184.65 FOB and $9.74 freight equating to $194.39 C&F

*Aston: 60,000 tonne Russian wheat at $186 FOB and $9.74 freight equating to $195.74 C&F

*ADM: 60,000 tonnes Romanian wheat at $187.01 FOB and $9.10 freight equating to $196.11 a tonne C&F

Source: Reuters

 

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