Egypt’s state grains buyer, the General Authority for Supply Commodities (GASC), has purchased 430,000 metric tons of Russian wheat in a private deal, bypassing the traditional tender process. This transaction, confirmed by three sources familiar with the matter, is aimed at securing wheat for October shipment.
The wheat was acquired from Russian grain trader United Grain Company (OZK) through an intermediary firm, with prices reported at $233 per metric ton. It remains unclear if this price includes shipping costs. The intermediary had initially purchased the cargoes at $231 per metric ton.
As the world’s largest wheat importer, Egypt is looking to capitalize on lower global prices to meet its grain needs, which are essential for subsidized bread consumed by millions of Egyptians. GASC had previously faced challenges in securing sufficient wheat quantities, managing to obtain only 7% of its target during its largest tender in August due to higher-than-expected prices.
Despite these challenges, Supply Minister Sherif Farouk expressed confidence in reaching the target of approximately 3.8 million tons of wheat by the end of 2024 through a mix of tenders, direct purchases, and government-to-government agreements.