Wheat prices jump as GASC books 300k mt at tender

8 Jan 2020 | Tom Houghton

Prices spiked as Egypt’s state grain buyer returned to the market on Wednesday, with origin levels out of the Black Sea up $10/mt since it was last in the market a month ago, according to results seen by Agricensus.

General Authority for Supply Commodities (GASC) paid an average of $232.23/mt FOB and $245.71/mt CFR for 300,000 mt of Romanian, Russian, and Ukrainian milling wheat at Wednesday’s tender.

Sellers included Ameropa, Cofco, Garant Logistik, Grain Export, and LDC.

At its previous tender in mid-December, GASC bought 355,000 mt from origins including France, Romania, Russia, and Ukraine at an average of $222.44/mt FOB and $238.19/mt CFR for delivery February 5-15.

With freight costs falling since the previous tender, market sources pointed to a futures rally through December as the main reason driving prices higher.

Egypt is the biggest wheat buyer in the world, importing around 12.5 million mt of wheat a year, with GASC's purchases amounting to around half of that volume, according to the USDA.

Details of previous GASC buying can be found on the Tender Dashboard.