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CAIRO - Egypt's state grains buyer, the General Authority for Supply Commodities (GASC), is believed to have bought 480,000 metric tons of Russian wheat in a private deal with Russia's state grains trader United Grain Company (OZK), several traders told Reuters.
The wheat is expected to be shipped in November and December, with traders estimating the price at about $265 a ton free-on-board (FOB) with payment in 270-day letters of credit.
Earlier estimates by traders were one million tons, but were later estimated at eight 60,000-ton cargoes.
It is unclear if this price point is below an unofficial price floor set by the Russian government to dampen domestic flour prices.
Traders said there are different minimum prices for private sales and sales in public tenders, as well as different prices for sales for different months and protein wheat grades.
One trader said that price floor for November was thought to be set at $270 per ton.
"It is really hard to guess if the minimum price is really being imposed strictly to reduce exports," the trader added.
"Russian export flows may be reduced but are likely to be still very big," the trader said.
The unofficial price floor has proven a hindrance for both GASC and for Russian wheat suppliers who had upped sales of relatively cheap Russian grain to Egypt since Russia invaded Ukraine in February 2022.
Last month, Russia's agriculture ministry prevented the private sale of 480,000 tons of Russian wheat to Egypt, apparently because it was sold below the price floor, traders said.
GASC and OZK did not immediately respond to a request for comment.
(Reporting by Sarah El Safty, Michael Hogan and Gus Trompiz; Editing by Jan Harvey, Emelia Sithole-Matarise and Grant McCool)