Might be something to keep an eye on. Looks like food flow to Egypt is in danger of some disruption.
Egypt, for the second time in a week, scrapped a tender for wheat, after receiving offers for just four cargos, underlining the extent of caution among merchants over dealing with the world's top importer of the grain. Gasc, the official Egyptian grain authority, gave no reason for ditching the tender. However, the event attracted offers of just four cargos of wheat – two from France, and one apiece from Romania and Russia.
A Gasc tender just before Christmas - the last before Egypt's wheat purchases because shrouded in concerns over credit, and a zero tolerance of cargos containing ergot – received offers of more than 1.2m tonnes of the grain. The price of the wheat offered was - at $186.63-193.55 a tonne, excluding freight of $5.00-7.59 a tonne, depending on origin - also viewed by some traders as an above-market rate, reflecting a premium for the increased risk of dealing with Egypt.
Egypt ditches second wheat tender this week, as offers dry up https://t.co/C4KTvOGQHj pic.twitter.com/4pKAEns2Pb— Germain Bour (@BourGermain) February 6, 2016
1 comment:
Egypt's leaders had better resolve this.
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