Egypt’s GASC cancels second wheat tender as Russia-Ukraine war weighs on offer prices

Egypt’s state grains buyer GASC was forced once again to cancel its wheat tender on Monday on the back of sharply higher prices as supply worries mount in the wake of Russia’s invasion of Ukraine.

Egypt, often the world’s largest wheat importer, scrapped for the second time since Thursday its latest tender to buy wheat after drawing just a few offers at sharply higher prices – ditching efforts to secure the grain it needs to subsidise bread for its people.

Russia and Ukraine together account for more than a quarter of the world’s wheat exports. While Russian commodities are so far exempted from sanctions, traders are being worried by the fast-moving penalties, increasing freight and insurance costs, and shipping suspends in the region. Restricting grain supplies from the area is threatening to further boost global food prices that are near a record.

Only three companies took part in Egypt’s tender on Monday, with two offers of French wheat and one for U.S. supplies, traders, who asked not to be identified, told Bloomberg. That compares with 17 in a tender from mid-February, before the Russia-Ukraine war broke out. Offer prices soared by at least $80 a tonne since then. This made Egypt’s state buyer said high prices were behind the tender cancelation.