Egypt buys 170,000 tons of European wheat despite drop in Russian prices | Hellenic Shipping News Worldwide

Egypt’s state grains buyer, the General Authority for Supply Commodities (GASC), said on Wednesday it had bought 170,000 metric tons of wheat in an international tender.

The purchase comprised 60,000 tons of Romanian wheat for Nov. 10-20 shipment and 110,000 tons of Romanian and Bulgarian wheat for Nov. 21-30 shipment, it said.

European wheat has continued its winning streak in Egyptian tenders as an unofficial price floor has weighed on Russian wheat’s competitiveness.

Traders say the Russian government had been imposing an unofficial minimum export price of $270 a ton fob in international tenders to put the brake on exports and cool domestic flour prices.

This was illustrated by Russian wheat all offered at $270 a ton FOB in the first round of GASC’s tender, the same price offered for Russian wheat in a tender last week.

But during negotiations with GASC in today’s tender, a series of participants dropped their prices for Russian wheat to below $270 a ton, with $260 a ton offered by several companies.

Traders said Russian authorities had given unofficial approval for the price cut.

However, Romanian and Bulgarian wheat were still offered at lower prices.