Wheat quotes continue to fall despite high tender prices in Egypt and Algeria

Wheat prices on world stock exchanges continued to fall yesterday, and even the results of tenders in Algeria and Egypt did not reduce the speculative pressure of news about the possible unblocking of Ukrainian ports.

The Egyptian State Agency (GASC) bought 465,000 tons of food wheat at an average price of $ 480 / t C&F in a tender on June 1, almost 41% higher than the last pre-war tender and twice the price of last year’s auction.

At the tender GASC purchased:

• 240 thousand tons of Romanian wheat at a price of $ 444.75-455.97 / ton FOB,
• 175 thousand tons of Russian wheat at a price of $ 438.8-455 / ton FOB,
• 50 thousand tons of Bulgarian wheat at a price of $ 487.77 / ton C&F.

This tender provides for 3 shipment periods: the first – July 20-31 on FOB basis, the second – August 1-10 on FOB basis, the third – August 1-20 110 thousand tons of Russian and Bulgarian wheat on C&F basis at a price of $ 495 / t C&F and $ 487.77 / t C&F.

Bids were submitted for the tender for 420 thousand tons of French wheat at a price of 447.8-463.5 $ / t FOB, but due to the high cost of freight, Egypt preferred cheaper Russian wheat.

Ukrainian wheat was not offered in the tender due to hostilities in the country. In addition, it is worth recalling that Russia stole 400 thousand tons of grain from the occupied territories and even tried to sell them to Egypt, but after refusing sent the grain to Syria.

The Algerian state agency OAIS bought 100,000 tons of food wheat (presumably French or Black Sea-based) in a tender with a batch of 10,000 tons in July and August at a price of $ 480 / t C&F, which is $ 14 / t higher than the previous auction on April 12. .

High purchase prices in tenders could not keep from falling prices on world exchanges, which fell by another 3-4.6% yesterday, losing 10% of prices in a week in anticipation of the release of exports from Ukraine. At the same time, the results of tenders show that buyers do not really believe in lowering world prices in the near future.

Yesterday futures fell:

• 4.6% or $ 17 / t to $ 382.6 / t – July futures for soft winter SRW wheat in Chicago (-11.5% for two sessions),
• 3.4% or $ 13.7 / t to $ 414.6 / t – July futures for winter winter HRW wheat in Kansas City (-9.8%),
• by 4.4% or $ 18.56 / t to $ 439.8 / t – September futures for hard spring HRS-wheat in Minneapolis (-9.2%),
• 1.2% or $ 5 / t to $ 395.25 / t – July futures for Black Sea wheat in Chicago (-3.5%),
• by 3% or € 11.75 / t to € 380.5 / t or $ 405.4 / t – September wheat futures on Parisian Euronext (-6.7%).

Tags: USA, Ukraine, Russia, Egypt, Algeria, prices, wheat