French wheat offered lowest at Egypt's GASC tender

CAIRO: Egypt's state grains buyer, the General Authority for Supply Commodities (GASC,), on Tuesday received a lowest offer of $293.75 per tonne for 60,000 tonnes of French wheat in an international purchase tender.

GASC is seeking an unspecified quantity of wheat for shipment March 15-30, tapping the international market for grain for the first time since key exporter Russia introduced an export tax of 50 euros ($60.18) per tonne of wheat to go into effect from the start of March.

"Russia's export tax has blunted the automatic price lead of Russian wheat but not pushed it out of the market. France is back in the picture ... but high shipping costs look too much of a burden for other suppliers outside of the Black Sea and European Union," said a German trader.

Russian wheat has made up the lion's share of Egypt's purchases since the buying season began in July, amounting to about 3.44 million tonnes so far, according to Reuters calculations.

GASC cancelled its last wheat tender on Jan. 12, a move traders said at the time was likely prompted by high prices.

"Egypt should make a big purchase today regardless of the differences between the bids on offer because prices will keep getting higher, specially when we get closer to the end of the season and demand for wheat increases," said an Egypt-based trader.