They sold Romanian wheat to Egypt for $258.75/ton and $264.52/ton C&F (cost and freight), with delivery scheduled for the second half of July, while Jordan bought some at $290.5/ton with the delivery set for October 1 to 15.
In comparison, the wheat price in the Constanta Harbor in July 15 to 30, 2013 was $245-$248/ton. Export prices are a reference for the domestic market because farmers usually get 10% to 15% less than traders get on their export markets.
The traders’ positions for the first four delivery months of the 2014/2015 season are critical partly because 38% of the exports have concentrated in this time frame in the last five seasons.
This strategy makes traders buy some of the available grain in the first few weeks after harvesting so it can be transported, conditioned and then delivered to its final destinations.
The massive deliveries at the beginning of each season coincided with similar positions of Russia and Ukraine, which export seven times more than Romania. The competition between Romania and the two countries is putting pressure on domestic prices, as traders set their quotes to be competitive with import markets in Africa and the Middle East.
Egypt bought Romanian wheat again two months after awarding the last contract to the traders operating in Romania. The authorities in Cairo ordered 180,000 tons, two thirds of which to be delivered via Constanta, and one third coming from Russia.
Cargill will supply 60,000 tons of wheat for $258.76/ton and Nidera will export a similar amount at $264.52/ton.
Cargill will collect $15.5 million for the contract, while Nidera will get another $15.8 million.
Romania will remain the third biggest wheat exporter in the EU, behind France and Germany.
(English version by Loredana Fratila-Cristescu)