In the latest international purchasing tender held by Egypt’s state grains buyer, the General Authority for Supply Commodities (GASC), the lowest free-on-board (FOB) offer presented was $243 per metric ton for 60,000 tons of Ukrainian wheat, according to traders.
The offer was submitted by LDC, one of the major global agribusiness firms. GASC is seeking wheat in this tender, with the deadline for offers set for June 11, and the results expected to be announced later today.
Suppliers were asked to submit offers for at-sight payment, with shipment periods between August 1-10 and/or August 11-20.
Traders noted that the repeated offers of Russian wheat at $265 per ton FOB are believed to reflect the Russian government’s current unofficial minimum export price floor, which is aimed at slowing down Russian wheat exports and cooling domestic flour and bread prices.
However, the traders also pointed out that more grain ships are sailing from Ukraine every week without any Russian attacks, giving the market more confidence to offer Ukrainian supplies in tenders, even though Russia has not provided safety guarantees for ships sailing from Ukrainian ports.
This latest tender result demonstrates the growing competitiveness of Ukrainian wheat in the global market, as the country’s exports continue to recover from the disruptions caused by the ongoing conflict. The $243 per ton offer for Ukrainian wheat represents a significant discount compared to the reported Russian minimum price, highlighting the market’s appetite for alternative sources of supply.
The outcome of this GASC tender will be closely watched by global wheat buyers and traders, as it may provide further insights into the dynamics of the international wheat market and the relative positioning of key exporting origins, including Ukraine and Russia.