Egypt’s Gasc buys wheat below $200 per ton

First time in at least two years that prices have been that low

Egypt’s grain authority, Gasc, bought wheat at less than $200 per ton, including freight, for the first time in at least two years, according to a report.

The deal highlights the rich supplies offered in Russia not that the country has lifted its export duty.

Gasc bought 240,000 tons of wheat for $47.8 million – an average of $199.28 per ton on a cost and freight basis. That was less than the $205.76 per ton at the last tender three weeks ago, and the $270 per ton it was paying in December.

The low price reflects the supplies on offer after a record world harvest in 2014 and a strong crop expected in 2015.

The International Grains Council recently raised its forecast for global wheat output in 2015-16 by 10 million tons to 715 million tons.

At the latest tender, Gasc was offered 14 cargos of wheat, down from 17 at the previous tender. Nine of the cargos were from Russia, totaling 180,000 tons, and the rest from Romania at 1.2 million tons. France remains the top country of origin for Gasc purchases in 2014-15, but only one French cargo was offered at the most recent tender.

Egypt is the world’s top wheat-importing country.