News: UPDATE 2-Russian wheat knocks out U.S. as lowest offered to Egypt on shipping costs

• U.S. wheat knocked out of competition on high freight costs
• Russian wheat dominates Egyptian market
• Egypt is world's largest wheat buyer

(Adds freight offer)

DUBAI, Oct 26 (Reuters) - Russian wheat was the lowest offered to Egypt, the world's largest buyer, at its state tender on Friday after U.S.origin wheat failed to compete on high shipping costs.

U.S. wheat was offered lowest before freight costs at $219 a tonne free-on-board (FOB) by Cargill but climbed to as much as $256.50 a tonne cost and freight (C&F) with shipping costs at $37.50 a tonne.

The lowest offer including shipping costs was presented by ECTP at $248.80 a tonne C&F for 55,000 tonnes of Russian wheat.

Results for the tender are due later on Friday. The wheat market in Egypt has been dominated by Black Sea origin, mostly Russian wheat, in the past few years, with the U.S. largely outside of the competition.

But markets have for some weeks been expecting that world wheat export demand will switch to the United States following harvest problems in the Black Sea region, west Europe and Australia, one European trader said.

"We may be seeing initial indications of this today, although the higher cost of ocean shipping may stop the U.S. from winning the tender," the trader said.

Freight offers are usually submitted to GASC after the FOB wheat offers.

Russian wheat prices have been rising steadily as the country's exports have continued at a very high level this autumn despite the poor harvest.

There have also been concerns about Russia imposing some form of export restrictions.

Traders said the following offers were made in dollars a tonne on a FOB basi

*ADM: 60,000 tonnes Russian at $239.50, 60,000 tonnes Romanian at $241.23

*Glencore: 55,000 tonnes Russian at $237.86 *Cargill: two cargoes each 60,000 tonnes U.S. SRW at $219, 55,000 tonnes Russian at $235

*CHS: 60,000 tonnes Romanian at $243.75 *Amerop 60,000 tonnes Romanian at $241.67 *Aston: 60,000 tonnes Russian at $235.80 and 60,000 tonnes Russian $237.80

*Daewoo: 60,000 tonnes Russian at $234.99 *GTCS: 60,000 tonnes Russian at $235.85, 60,000 tonnes Russian at $236.95

*ECTP: 55,000 tonnes Russian at $230 *Soufflet: 60,000 tonnes French at $243.5 *Louis Dreyfu 60,000 tonnes Ukrainian at $235 *Garant Logistic 60,000 tonnes Russian at $241 *Agro ASP: 60,000 tonnes Russian at $237 *Cofco: 60,000 tonnes Romanian at $245, 55,000 tonnes Russian at $242

Traders also said the following were the best offers, on a cost and freight basis, in dollars per tonne:

*ECTP: 55,000 tonnes of Russian wheat at $230 FOB and $18.80 freight equating to $248.80 C&F

*Daewoo: 60,000 tonnes of Russian wheat at $234.99 FOB and $18.18 freight equating to $253.17 C&F

*Aston: 60,000 tonnes Russian wheat at $235.80 FOB and $18.18 freight equating to $253.98 C&F

*GTCS: 60,000 tonnes Russian wheat at $235.85 FOB and $18.18 freight equating to $254.03 C&F

*Louis Dreyfu 60,000 tonnes of Ukrainian wheat at $235 FOB and $18.59 freight equating to $253.59 C&F

*Cargill: 55,000 tonnes of Russian wheat at $235 FOB and $18.90 freight equating to $253.90 C&F

*GTCS: 60,000 tonnes of Russian wheat at $236.95 FOB and $16.94 freight equating to $253.89 C&F

*Cargill: 60,000 tonnes of U.S. soft red wheat at $219 FOB and $35.49 freight equating to $254.49 C&F

*Agro AST: 60,000 tonnes of Russian wheat at $237 FOB and $17.70 freight equating to $254.70 C&F

*Cargill: 60,000 tonnes of U.S. soft red wheat at $219 FOB and $37.50 freight equating to $256.50 C&F