Egypt has issued its largest-ever wheat import tender, seeking 3.8 million metric tons of wheat in a strategic move to capitalize on a drop in global wheat prices to their lowest in four years. This ambitious purchase aims to alleviate economic pressures by potentially reducing the country’s import bill.
Finance Minister Ahmed Kouchouk stated, “My colleagues are seizing this opportunity amid the current global market conditions,” highlighting that the global price drop presents both challenges and opportunities.
The General Authority for Supply Commodities (GASC) has altered its procurement approach with this tender, covering shipments from October to April, rather than the usual one or two-month periods. Egypt, a major wheat importer reliant on subsidized bread for millions, imports approximately 5.5 million metric tons annually.
Most of Egypt’s wheat comes from Russia, which supplied nearly 70% of its wheat imports in 2023. Analysts expect GASC will continue to source from Russia and other Black Sea regions.
The extended tender period has raised concerns among traders about the feasibility of securing such a large quantity. The 270-day payment term may deter some suppliers, leading to potential price adjustments to cover the financing costs.
GASC aims to maintain a wheat reserve covering nine months of demand, with current reserves at 6.9 months. Some speculate that Egypt’s large-scale purchase could be a response to financial challenges or regional instability.
Following GASC’s announcement, European wheat futures saw an uptick.
