Egypt bought almost half a million tons of Russian grain
5.09.2023 - 12:20
Egypt’s state grain buyer purchased about half a million metric tons of Russian wheat under a private deal.
The General Administration of Commodities (GASC) bought about 480,000 tons of Russian wheat from trader Solaris1 on September, Reuters reported, citing data from four traders.
Egypt bought grain at a price of about $270/ton C&F. This price is lower than those offered in traditional tenders.
Traders told Reuters that the price could be lower than the unofficial floor set by the Russian government to control domestic wheat prices.
Other Russian wheat suppliers submitted offers on Friday at an FOB price of $265/t, believed to be the floor price set, and a C&F price above $270/t.
Traders said the legal minimum price is not binding, but suppliers are expected to follow instructions from Russia’s agriculture ministry.
Traders say there are different floor prices for private sales and open auctions, as well as different prices for sales each month from September to December and discounts for lower protein wheat varieties.
After the war in Ukraine interrupted wheat exports from the country, Egypt relied mainly on relatively cheap Russian grain.
