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Egyptian GASC Buys 240,000 Tons of Wheat in Tender

17 Nov 2017 10:23 am

By David Hodari

LONDON--Egypt's state grain buyer, the General Authority for Supply Commodities (GASC), bought 240,000 metric tons of wheat in its latest tender, traders said late Thursday.

The deal comprises four 60,000-ton cargoes of Russian wheat.

Two of those cargoes were from trading house GTCS, costing $209.45 a ton and $208.60 a ton including shipping fees. Of the two remaining lots of grain, one was bought from trading house Daewoo at $209.45 a ton and the other was from Garant Logistics, bought at $209.45 a ton including shipping fees, traders said.

Shipment is scheduled for between Jan. 1 and Jan. 10, according to European traders.

Egypt accepted four of the nine offers submitted by trading firms in the tender.

In addition to the four cargoes of Russian grain that the GASC accepted, there were four further offers of Russian grain and one for Romanian wheat.

This latest tender demonstrated the growing dominance of Black Sea wheat in GASC tenders--Egypt's six most recent wheat tenders were entirely filled by Russian grain.

The combination of two record-breaking Russian yields, the Russian grain industry's attempts to take market share from other nations, and regulatory wranglings between the Egpyptian government and grain importers have all fostered growing dependency on Russian wheat.

Thursday's tender was Egypt's first since its courts ruled to re-instate a zero-tolerance policy on common grain-fungus ergot. Traders had complained that the ban was both unjustifiable and unsustainable, predicting that it would deter offers for GASC tenders.

While those forecasts were confounded by the nine offers put forward for this tender, the Russia-heavy nature of the offer-list marked the latest GASC tender to receive reduced offers from nations such as Romania or France.

Traders said those two countries had been put off by the Egyptian government's recent allegations of poppyseed contamination, with the fresh ergot ban unlikely to help matters.

Wheat was last up 0.42% at $4.23 a bushel.

Write to David Hodari at david.hodari@wsj.com

(END) Dow Jones Newswires

November 17, 2017 05:23 ET (10:23 GMT)

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