US wheat has, after a gap of seven months, won a second order from the world's top importer in a week, undercutting French supplies, and with Russian grain sidelined by logistical problems.
Egypt's state grain buyer, the General Authority for Supply Commodities (Gasc), said that, after asking merchants worldwide for offers, had purchased 180,000 tonnes of US soft red winter wheat at $259 a tonne.
The order followed a purchase by Gasc on Saturday of 55,000 tonnes of US wheat, the first order since June.
And Thursday's purchase was the largest of US wheat since at least 2010.
US supplies have lost out in 2011-12 first to Russian wheat, which flooded the market after an export ban was lifted last year, and then to Argentine and French grain, which have also taken turns as price leaders.
US vs the rest
However, merchants failed to offer any Argentine or former Soviet Union grain to the latest tender.
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GASC wheat orders, February 16
60,000 tonnes of US soft red winter wheat from Venus, at $259 a tonne, plus $26.99 a tonne freight
120,000 tonnes of US soft red winter wheat from Bunge, at $259 a tonne, plus $26.99 a tonne freight |
Russia's absence was "probably due to export problems", Nomani Nomani, the Gasc vice-chairman, said, a reference to the cold weather which has snarled up transport in much of the region, leaving some ships frozen into sea ice.
And while French wheat made up some ground on US supplies, narrowing its premium by nearly $5, it remained more than $6 a tonne out of the running, even with the extra cost of shipping to Egypt from the US included.
Toepfer International, Germany's largest grain trading house, noted separately the growing affordability of European Union supplies, saying "prices have certainly worked their way to competitiveness because of the unwillingness to sell in the Black Sea region."
"But export sales are being sometimes hindered by the volatile euro-dollar exchange rate," Toepfer added.
'Not breaking their backs'
A UK grain trader said that European grain merchants were "not breaking their backs to win every deal", with this month turning up plenty of import demand.
Also on Thursday, Iran bought 500,000 tonnes of soft wheat, taking total purchases in February to 1.1m tonnes, believed to come from Australia, Brazil, Canada and Germany.
Taiwanese millers purchases 85,000 tonnes of US wheat.
Earlier in the week, Israeli, Libyan and Saudi Arabian buyers tendered for the grain, while buyers last week included Algeria, Iraq and Tunisia.
"It is interesting that Egypt have gone large this time" in their US purchase, after buying only 55,000 tonnes at the weekend, the grain trader added.
"It makes it look like we are not in quite such a buyers' market as some would have us believe."
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