Egypt’s state grains buyer, the General Authority for Supply Commodities (GASC), announced the purchase of 280,000 metric tons of wheat in a recent tender, significantly missing its target of 3.8 million tons. This tender was the largest ever launched by GASC and aimed to capitalize on falling wheat prices. However, traders noted that higher-than-expected prices ultimately hindered the purchase.
The tender saw around 102 offers from 15 suppliers, but many were priced at a premium due to extended shipping periods and less favorable payment terms. A European trader commented, “The main problem was the 270-day payment delay for the wheat demanded in the tender. Egypt wanted to take advantage of current low prices but needed to offer immediate payment.”
As one of the world’s largest wheat importers, Egypt has faced high inflation over the past two years and has relied on support from the International Monetary Fund and Gulf nations to address its foreign currency challenges. The country has implemented austerity measures, including raising subsidized bread prices, to manage its budget.
GASC was seeking wheat for the October-to-April shipment period, but only a few offers were made for shipments after December. The recent purchase included 180,000 tons of Ukrainian wheat and 100,000 tons of Bulgarian wheat.