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Egypt bets on Russian origin

Египет залага на руския произход
Egypt's State Grain Buyer (GASC) said on Tuesday it had bought 480,000 tonnes of Russian wheat in an international auction.

The purchase included 180,000 tonnes for delivery from February 1 to 14, as well as 300,000 tonnes for delivery from February 15 to 29.

We recall that GASC was active in the world wheat market last week as well, when it purchased wheat worth a total of 600,000 tons through an international auction, with payment under a 270-day letter of credit.

In terms of last week's purchases, Egypt announced it had purchased three cargoes of 60,000 tonnes for shipment between January 26 and February 4 after receiving offers from Bulgarian, French, Romanian, Russian and Ukrainian exporters.

The purchase includes two Russian cargoes at $255/ton FOB. The third cargo was of Ukrainian origin at $249.90/ton FOB.

The terms of the auction included three delivery periods. The January 5-15 slot attracted nine bids totaling 515,000 tonnes, with the cheapest originating in Russia at prices of $250/tonne and $263/tonne for the respective payment options.

The second bidding period was January 16-25, with ten bids submitted for a total of 580,000 tonnes with the lowest price at $250/tonne and $260/tonne. GASC made its purchases in the most recent period alone, which attracted 17 bids totaling 1 million tonnes and priced $5 per tonne below previous bids.

Egypt's return to international tenders has become an event after the country has for the past three months relied on direct purchases in private negotiations, with Russia dominating the dialogue.

In early September, GASC reportedly bought 480,000 tonnes of Russian wheat from trading firm Solaris at around $270/tonne C&F plus one load from Bulgaria at the same price.

In the second week of October, GASC booked another eight cargoes of 60,000 tonnes each from OZK, also known as United Grain Co, a Russian state-backed trader at $265/tonne FOB. Then, at the end of last month, a new volume of 470,000 tonnes was purchased, again from Russian exporters.

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