Egypt's GASC cancels international wheat tender for Aug 21-31 shipment

Credit: REUTERS/MOHAMED ABD EL GHANY

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CAIRO, June 15 (Reuters) - Egypt's state grains buyer, the General Authority for Supply Commodities, on Tuesday said it was cancelling an international wheat purchasing tender that had been seeking the grain for shipment over Aug. 21-31.

GASC did not provide a reason for the cancellation, but traders said that high freight rates may have been a factor.

"Ocean freight looked too expensive," one European trader said, adding that it is unusual for shipping costs to stop a tender.

The Baltic exchange's main sea freight index rose for the fifth straight session on Tuesday, supported by stronger rates across vessel segments.

The index had risen to its highest in a month on Monday.

Solaris presented the lowest offer in Tuesday's tender, at $250.88 a tonne for 60,000 tonnes of Russian wheat. The price was seen by traders as indicative of the competitiveness of the new Russian crop despite uncertainty presented by the country's formula-based tax.

Russian export prices for the summer's new wheat crop fell slightly last week after an improved outlook for the upcoming harvest, analysts said on Tuesday.

Wheat on the Chicago Board of Trade (CBOT) was expected to ease for the third day in a row, pressured by plentiful global stocks and light demand for U.S. supplies on the export market.

"It may be cheaper to buy tomorrow," another trader said.

For a full list of offers presented at the tender, click on

(Reporting by Nadine Awadalla and Michael Hogan Editing by David Goodman)

((Nadine.Awadalla@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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