Wheat market decline cuts prices at Egypt tender

Egypt, the world's top wheat importer, highlighted the extent of the decline in world prices of the grain by purchasing supplies $40 a tonne cheaper than it did a month ago.

Egypt's Gasc grain authority at tender bought 180,000 tonnes of Romanian and Russian wheat, for an average of $262.15 a tonne including freight on a c&f basis.

The order included 60,000 tonnes of Romanian wheat purchased for $248.50 a tonne excluding freight – down from the $289.00 a tonne it paid for wheat, from Ukraine, at its last tender on May 16.

The price of this cargo – the cheapest Gasc has paid in 11 months - reflected in part the return of competitively-valued wheat from Romania, the main origin for Gasc purchases at tender in 2013-14, but which was absent from the previous two events.

However, even on a like-for-like basis prices have fallen steeply – if not quite as fast as futures.