Egypt’s state grain buyer, Mostakbal Misr for Sustainable Development, has successfully secured sufficient wheat to meet the country’s needs through the end of June 2025, according to two sources with direct knowledge of the matter.
Key Details:
Contract Overview:
Mostakbal Misr’s contracts reportedly total about 1.267 million metric tons, primarily sourced from Russia.
Shipments of the contracted wheat have already begun arriving at Egyptian ports, with additional deliveries scheduled in the upcoming months.
Organizational Changes:
The selection of Mostakbal Misr as Egypt’s sole importer of strategic commodities in December marks a significant shift in the country’s grain procurement strategy.
Established in 2022 by presidential decree, Mostakbal Misr was formerly the development arm of the Egyptian Air Force.
The General Authority for Supply Commodities (GASC), which typically imported 4-5 million tons of wheat annually, has been replaced in this role.
Market Confusion:
Despite the announcements, some traders have expressed skepticism regarding the volume of wheat secured, citing inconsistencies between reported figures and market evidence.
Eduard Zernin, head of Rusgrain, stated that accredited Russian exporters were unaware of the details of the transactions, suggesting a lack of transparency.
Some traders estimate the actual amount secured to be around 480,000 metric tons, sourced primarily from local port warehouses and paid for in Egyptian pounds.
Wheat Dependency:
Egypt relies heavily on wheat imports to supply subsidized bread to 70 million people, facing difficulties in sourcing the grain as strategic reserves have dwindled.
An Egyptian government official noted that Mostakbal Misr has encountered resistance from international organizations, which prefer to deal with “civilian bodies” rather than government agencies.
Current Reserves and Procurement Goals:
Egypt’s strategic reserves have decreased from a seven-month stock in July 2024 to just three months now, including previously contracted quantities.
In September, GASC purchased 430,000 tons of Russian wheat for October delivery, but shipment delays have pushed some deliveries to November and December, with only 120,000 tons received so far.
Egypt also acquired 290,000 tons in November, totaling 410,000 tons since September, a small fraction of its broader procurement goal of 3.8 million tons by the end of 2024.