GASC said it bought the wheat at an average price of USD 258.89 a tonne, on a cost-and-freight basis.
Egypt is the largest importer of wheat in the world, and in the last two seasons was the most important commercial trade partner of Romania for this product. In the past couple of years, Romania has emerged as a major grains exporter to Egypt together with Black Sea producers Russia and Ukraine.
Egypt’s state grain buyer, the General Authority for Supply Commodities (GASC), said on Wednesday it bought 120,000 tonnes of French and Romanian wheat, agri.eu informs. Of the total, GASC bought 60,000 tonnes of French wheat from Granit and 60,000 tonnes of Romanian wheat from Bunge, GASC Vice-Chairman Mamdouh Abdel Fattah said. Because of the low price, some of the grains in Romania are imported from Bulgarian farmers near the border with Romania, grain dealers said. GASC said it bought the wheat at an average price of USD 258.89 a tonne, on a cost-and-freight basis. Romania’s 2014 wheat crop rose to a record 7.4 million tonnes from 7.3 million a year earlier while a rapeseed crop of 1.1 million tonnes marked a 44-year high as it gears up for robust maize and sunflower harvests.
Romania reported a production of 7.37 million tonnes of wheat this year, up from 7.34 million tons last year, the highest in nine years value and the second in the last 44 years, according to the Romanian Ministry of Agriculture.
Egypt’s GASC bought its first French wheat at tender in nearly eight months, as offers from Russia, which has started strongly on its 2014-2015 export campaign, rose out of competitiveness.
The purchase reflected a drop in the offer price to USD 240.40 a tonne, enough easily to undercut rival offers of Romanian and Russian supplies even allowing for the extra shipping cost to Egypt from France rather than from the Black Sea. Indeed, the cheapest Russian offer was at USD 251.95 a tonne, from Noble, excluding freight. All five cargos of French wheat offered were priced below USD 249 a tonne. The last wheat GASC bought from France, in January, was priced at USD 278 a tonne. Indeed, Russian wheat prices have, contrary to those elsewhere, been on a strengthening trend, supported by a flying start to 2014-2015 for exports, which hit a record 4.2 million tonnes last month, according to analysis group SovEcon.