Russia has kept its grip on wheat trade with Egypt, the world's biggest buyer, despite the drought devastating this year's harvest, winning yet another tender – albeit at a higher price.

Cairo's General Authority for Supply Commodities filled all 120,000 tonnes of its latest order with Russian grain, the country's third successive clean sweep in an Egyptian tender.

However, the average price of $211.73 a tonne for cargoes from Cargill and Louis Dreyfus was 15.4% more than Egypt paid for its last order of Russian wheat, two weeks ago, as reports of drought damage were inflating wheat prices worldwide.

On June 26, the GASC, Egypt's state grain buyer, paid only $165 a tonne, excluding freight.

'Consumers are worried'

Tuesday's result surprised some investors, given the drought which some had believed would have inflated Russian prices above those in other exporting countries.

In fact, the best price offered from French wheat, which also has higher shipping costs to Egypt, was $216 a tonne by Cargill.

"I'm surprised Russia did the business," a London analyst told Agrimoney.com, noting concerns among some buyers that Moscow would restrict exports to protect stocks.

"Consumers are worried, especially those that have been building their import programmes on Russian supplies."

The deal, however, offered merchants who were sitting on stocks to make a large turn, or offer growers with inventories potentially $180 a tonne, much higher than has been the norm of late.

Russian observers have forecast to Agrimoney.com that a slowdown in wheat exports is more likely later in the season, with supplies for now held up by the strong harvest in the northern Caucasus.