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An Egyptian farmer using a machine to separate seeds from wheat - Asmaa Waguih/Reuters
By Maha El Dahan
ABU DHABI, Sept 16 (Reuters) - Egypt's state grain buyer, the General Authority for Supply Commodities (GASC), said on Tuesday it had bought 180,000 tonnes of French wheat in a tender.
Of that total GASC bought 60,000 tonnes from Soufflet, 60,000 tonnes from Cargill and 60,000 tonnes from Granit, GASC Vice Chairman Mamdouh Abdel Fattah said.
GASC said it bought the wheat at an average price of $247.49 a tonne, on a cost-and-freight basis.
Traders gave the following breakdown of the purchase:
- 60,000 tonnes from Soufflet at $227.97 a tonne free-on-board (fob) with freight of $19.38 a tonne from Copa
- 60,000 tonnes from Cargill at $229.99 a tonne fob with freight of $17.80 from Copa
- 60,000 tonnes from Granit at $229.55 a tonne fob with freight of $17.80 from Copa
GASC had purchased mostly Russian, Romanian and Ukrainian wheat on the international market since the start of the year until its last tender on Sept. 3 in which it made its first French wheat purchase since January.
Egypt introduced a specification ruling out wheat with a moisture content of more than 13 percent in January, hurting prospects of shipments from France, where the average moisture content in the 2013 harvest was 13.5 percent.
In June, however, GASC raised its tolerance again for moisture content to 13.5 percent, albeit with heavier penalties.
Egypt has bought 1.365 million tonnes of wheat on the international market since July 1, the start of the fiscal year.
The supply ministry said last month its stocks had increased to six months' worth, to last until the end of 2014.
Egypt purchased 5.46 million tonnes of wheat from abroad in the 2013-2014 fiscal year in addition to 3.7 million tonnes of local wheat.
OFFERS
Traders said the following offers were presented in the tender, in dollars a tonne, on a free-on-board basis, unless otherwise stated:
- Soufflet: 60,000 tonnes French at $227.97
- Louis Dreyfus: 55,000 tonnes U.S. soft red wheat at $231.40, 55,000 tonnes U.S. soft red wheat at $234.98, 60,000 French at $236.74
- Cargill: 60,000 French at $231.50, 60,000 Russian at $245.50
- Granit: 60,000 French at $233.49
- Bunge: 60,000 French at $236.27
- Glencore: 60,000 French at $238, 55,000 Ukraine at $246
- Invivo: 60,000 French at $243.05
- Nidera: 60,000 Russian at $248
- Bunge: 60,000 Russian at $249.24
- Noble: 60,000 Russian at $249.90
- Olam: 60,000 Russian at $250.70
- Alegrow: 60,000 Russian at $252
- Vitol: 60,000 Russian at $253
FREIGHT
Traders also said the following freight (ocean shipping offers were made in the tender, in dollars a tonne:
France
- National Navigation: $19.38
- Venus: $18.67
- Mina Shipping: $17.85
- Copa: $17.80
- Glencore: $15.43
Russia
- National Navigation: $12.80
- Mina Shipping: $11.74
- Copa: $11.78
U.S. St. Lawrence
- Venus: $29.97
U.S. Gulf
- Venus: $31.75 (Reporting By Maha El Dahan; additional reporting by Valerie Parent in Paris and Sarah McFarlane in London; editing by William Hardy and Pravin Char)