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UPDATE 2-Russian wheat offered lowest at Egypt's GASC tender

Published 2020-11-26, 07:06 a/m
© Reuters.
GLEN
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(Adds C&F)

CAIRO, Nov 26 (Reuters) - Egypt's state grains buyer, the General Authority for Supply Commodities (GASC,) on Thursday received a lowest offer of $261 a tonne for 55,000 tonnes of Russian wheat in an international purchase tender, traders said.

The offer was presented by GTCS.

GASC is seeking an unspecified quantity of wheat for shipment Jan 20-31.

At its last wheat tender on Nov. 5, GASC bought 300,000 tonnes of Russian grain.

Egypt is looking to maintain strategic reserves of about 6 months in the face of uncertainty over global supply because of the COVID-19 pandemic.

The finance ministry on Wednesday said it would be paying the value-added tax on the freight of imported wheat cargoes until the government ammends the law to remove those charges. said exempting the freight from the VAT could help to lower the overall cost of importing grain at a time when prices have soared.

Traders said the following were the offers presented at the tender in dollars per tonne on a free-on-board (FOB) basis:

Supplier

Quantity

Origin

FOB GTCS

55,000

Russian

$261.00 Soufflet

60,000

French

$269.75 Ameropa

60,000

Romanian

$268.79 Posco

60,000

Russian

$262.80 LDC

60,000

Ukrainian $270.07 ADM

55,000

Russian

$265.50 Nibulon

60,000

Ukranian

$264.70 Solaris

60,000

Russian

$267.45 Grain

60,000

Russian

$264.00 Export

Cargill

55,000

Russian

$266.00 Glencore (LON:GLEN)

55,000

Russian

$270.86 Agro AST

60,000

Russian

$262.90

Traders said the following were the best offers including cost and freight:

Supplier Quantity Origin FOB

Freight C&F GTCS

55,000

RUSS

$261.00 $13.83 $274.83 Posco

60,000

RUSS

$262.80 $12.89 $275.69 Agro AST 60,000

RUSS

$262.90 $12.89 $275.79 Grain

60,000

RUSS

$264.00 $12.89 $276.89 Export

Nibulon 60,000

UKR

$264.70 $12.90 $277.60 ADM

55,000

RUSS

$265.50 $13.85 $279.35

No purchase has yet been made but results are expected later on Thursday.

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