Russia’s wheat exports to Egypt are slowing as the cereal becomes more expensive, SovEcon said.
There were just two offers to sell Russian wheat for delivery in early November because several other proposed sales were canceled as traders doubted they would be able to fulfill the commitments, Moscow-based researcher SovEcon said in a statement on its website today, citing unidentified traders.
The number of offers is down from five made for October delivery in the tender yesterday by Egypt’s General Authority for Supply Commodities, according to two traders involved in the process who asked to remain anonymous because they are not allowed to speak to the media. On Sept. 1, exporters presented 10 Russian wheat offers to GASC for October delivery, according to Bloomberg data.
Average prices for Russian wheat increased $6 to $10 a metric ton this month, and French wheat was cheaper, SovEcon said.
Russia, the world’s third biggest wheat exporter last season, is seen to export 8 million tons in 2012-13 from 21.6 million tons a season earlier because of drought, according to U.S. Department of Agriculture estimates. Russia’s government forecasts 10 million to 14 million tons for all grain exports this season, down from record 27.2 million tons in 2011-12.