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IKAR in Mass Media

Egypt Seeks to Buy Wheat After Futures Drop to Five-Year Low

08 марта 2016 года

Egypt, the world’s largest wheat importer, is seeking to buy the grain after futures fell to the lowest level in more than five years.

The General Authority for Supply Commodities, or GASC, issued a tender to buy at least 60,000 metric tons Wednesday, according to two traders familiar with the matter, who asked to not be identified because they’re not authorized to speak to media. The nation is taking advantage of lower prices, French farm adviser Agritel said in a report on its website.

Wheat futures traded in Chicago fell to the lowest level since June 2010 Tuesday as U.S. grain keeps piling up due to cheaper prices in other producing nations. In Paris, milling wheat declined to a three-week low Wednesday, and cooperatives remain concerned about the level of stockpiles unsold, said Arnaud Saulais, a broker at Starsupply Commodity Brokers.

“Egypt wants to benefit from the decline of the market and has launched a new tender of soft wheat,” Agritel said in the report. “French origins have a good chance along with Argentinian and Black Sea offers.”

Wheat for May delivery fell 0.1 percent to $4.445 a bushel on the Chicago Board of Trade by 11 a.m. London time. In Paris, milling wheat for the same month dropped to as low as 152.25 euros ($165) a metric ton on Euronext, the lowest since Feb. 10, before trading 0.5 percent lower at 152.50 euros a ton. The March contract, which expires next week, was trading at 144.25 euros.

Favorable weather is improving crop conditions in the U.S. as a rising dollar makes the nation’s wheat more expensive, Commerzbank AG said in a report e-mailed Wednesday. U.S. grain is facing growing competition “because prices in Europe are also nose-diving at the same time,” the bank said.

In the physical market, French grain with a minimum 11 percent protein content for loading at the port of Rouen was at 148.74 euros a ton Tuesday, according to data from the Office National Interprofessionnel des Grandes Cultures. That’s making the nation’s supplies competitive with grain from the Black Sea Region, which usually benefits from a lower freight rate.

Russian wheat with 12.5 percent protein content was Friday at $178 a ton, a five-year low, as Ukrainian grain of the same quality was Monday at $179.5 a ton, according to the Institute for Agricultural Market Studies and UkrAgroConsult. Argentine grain was also competitive at the last Egyptian tender, with an offer from BTG Pactual being the lowest of all if freight rates are excluded.

Egypt made its biggest wheat purchase in almost a year in last week in a sign that a standoff with international traders is easing. The nation had been getting fewer and higher offers after rejecting a cargo of French grain supplied by U.S. agribusiness Bunge Ltd. due to a dispute over the levels of ergot, a naturally occurring fungus.

http://www.dailynewsx.com/

Source: Dailynewsx.com  |  #grain   |  Comments: 0   Views: 108

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