Egypt’s GASC gets wheat tender offers despite quality row – trade
HAMBURG – Egyptian state buyer GASC received four offers in an international wheat purchase tender on Friday despite uncertainty over tough new quality rules which have disrupted its massive wheat import programme, traders said.
A wheat purchase tender on Tuesday was cancelled when no offers were received following a trader boycott.
Participation by international grain trading houses in Friday’s tender was noticeably lower than in past months following problems with Egypt’s limits on imports of wheat containing the ergot fungus, traders said.
The lowest offer was $186.64 a tonne FOB for wheat sourced from France, they said.
No purchase has yet been made and the results are expected later on Friday, traders said.
Wheat shipments to Egypt this year have been hindered by uncertainly about regulations covering traces of the ergot fungus. The GASC and the supply ministry have permitted a 0.05 percent ergot tolerance level but the agriculture ministry has previously insisted on zero ergot content.
Egypt has rejected a 63,000 tonne wheat shipment for containing traces of ergot.
The agriculture ministry, however, said on Wednesday it would allow wheat imports with up to 0.05 percent levels of ergot, a fungus common in wheat worldwide, reversing the zero tolerance policy.
Participation in the tender on Friday was lower than the seven trading houses which offered in a tender on Jan. 21 though 16 companies took part in GASC’s tender on Dec. 23 before the ergot issue intensified.
“We have still not received an official confirmation from the agriculture ministry that it will allow the 0.05 percent ergot tolerance level in wheat imports and this is making it too risky to offer,” one European trader said. “There is still great uncertainty among the international trading houses.”
Traders said these offers were submitted in the tender in dollars a tonne fob:
Seller FOB Origin Tonnes Ports
Soufflet 186.64 France 60,000 Two ports
Union Co. 190.41 Russia 60,000 Novorossiysk
Cargill 192.00 France 60,000 Dunkirk, one
port
Ameropa 193.55 Romania 60,000 Constanta
Traders said these offers were made in the separate freight tender to provide ocean shipping for the wheat in dollars per tonne:
Freight Offer Port
Ameropa 4.33 Constanta
NNC 5.99 Constanta
NNC 6.79 Novorossiysk
Union Co. 5.59 Novorossiysk
NNC 8.80 France
Traders said that including ocean shipping costs, these were the lowest offers in the tender in c&f terms in dollars per tonne:
Seller FOB Freight C&F Origin Tonnes
Soufflet 186.64 8.80 195.44 France 60,000
Union Co. 190.41 5.59 196.00 Russia 60,000
Ameropa 193.55 4.33 197.88 Romania 60,000
Cargill 192.00 8.80 200.80 France 60,000
The Friday tender had sought March 2-11 shipment.
