CAIRO- Egypt's state grains buyer, the General Authority for Supply Commodities (GASC), on Tuesday said it bought 120,000 tonnes of Ukrainian wheat in a tender for July 10-25 shipment.
The tender was the third during Egypt's harvest this year in a shift from the country's standard practice of not purchasing imported grain during the domestic procurement season.
President Abdel Fattah al-Sisi had urged authorities to bolster the country's strategic reserves in the face of the coronavirus pandemic.
The supply ministry subsequently said it planned to purchase 800,000 tonnes of imported wheat, of which it has now bought 480,000 tonnes.
Ukrainian wheat was offered at the lowest price, but traders said the shipment period might be difficult to meet because of uncertainty over the impact of recent dry weather in the Black Sea region.
GASC said it will pay for the grain with "at sight" letters of credit, which guarantee immediate payment on receipt of various shipment documents, as opposed to deferred payments of 180 days.
Traders gave the following breakdown of the purchase in dollars per tonne on a free-on-board (FOB) basis:
- Nibulon: 60,000 tonnes of Ukrainian wheat at $210 plus $10.40 freight, equating to $220.40.
- Louis Dreyfus: 60,000 tonnes of Ukrainian wheat at $210 plus $10.90 freight, equating to $220.90.
(Reporting by Maha El Dahan in Dubai, Nadine Awadalla in Cairo and Michael Hogan in Hamburg Editing by David Goodman) ((Nadine.Awadalla@thomsonreuters.com;))