Black Sea exporters scoop biggest Egypt wheat order of 2013
2013-07-19 12:37:59
Black Sea wheat exporters highlighted their refreshed pre-eminence as sources of competitively-priced wheat as they scooped all of the biggest order by Egypt in eight months – although French supplies came closer to contention.
Egypt's state grain authority - at its second tender this month following a four-month hiatus – bought 300,000 tonnes of wheat, its biggest order since December.
As with the previous tender, all of the business went to Black Sea exporters, with Russia joining Romania and Ukraine, the winners last time.
It was Russia's first victory at an Egyptian tender since October, underlining the country's return to exports now that its ongoing harvest is replenishing stocks depleted by a strong start to exports in 2012-13 after a drought-hit crop.
Separately, SovEcon, the Moscow-based analysis group, raised to 700,000-800,000 tonnes, from 500,000-600,000 tonnes, its forecast for Russia's exports this month, citing business with Egypt, Iran, Iraq and Israel.
Lower price
Underlining the competitiveness of the wheat export market, Gasc paid, at an average of $247.93 a tonne, $3.30 a tonne less for grain this time than two weeks ago.
Chicago futures, the world benchmark, show a small rise during that time.
French wheat, the only non-Black Sea supplies submitted to the tender, were offered at $259.72, by Cargill.
While some $12 a tonne above the highest winning bid, excluding freight, this is closer than at Gasc's July 2 tender, when French wheat was $16 a tonne behind the pace.
Separately on Thursday, Strategie Grains lifted its estimate for the European Union wheat harvest by 2.1m tonnes, including a small upgrade for the French crop.
US exports
No US wheat was offered to the latest tender, although it is considered unlikely to have won a showing in the tender being more expensive than Black Sea grain, especially when the extra cost of shipping across the Atlantic is factored in.
However, separately, the US Department of Agriculture revealed US weekly export sales of 996,600 tonnes of wheat, above market expectations of a figure of 400,000-800,000 tonnes.
The figure included 442,000 tonnes bought by China, which has made a series of purchases following a disappointing domestic harvest, which saw quality depleted by late rains.