Back to the complete issue
Wednesday, 13 June 2018

GASC amends wheat terms to get back in on the good graces of global wheat traders

GASC amends wheat terms to get back in the good graces of global wheat traders: The General Authority for Supply Commodities (GASC) amended the terms of its global wheat import tenders ahead of Tuesday’s international wheat tender, Reuters Arabic reports. GASC reportedly reduced the cost of sieving to USD 2 per tonne from USD 3. The state grain buyer also reduced demurrage fees at Egypt’s port to USD 10,000 per day for the first 10 days, from USD 12,000 for 12 days. Traders have been complaining of high demurrage fees, particularly as the sieving process, which reduces foreign contaminants, takes a long time. The changes also come as confusion over ergot policy over the past year has raised the costs of buying wheat and caused disruptions in the supply.

How did the changes impact yesterday’s tender? GASC received several offers for wheat, with the lowest offer put forth by traders coming in at USD 209.5 per tonne free-on-board (FOB) for Russian wheat, traders tell the newswire. The lowest offer after accounting for shipping costs was USD 224.6 per tonne for 60,000 tonnes of Russian wheat and was presented by GTCS. GASC ended up buying a total of 420k tonnes, 300k tonnes from Russia and the rest from Romania.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.