Egypt’s GASC issues wheat tender for April delivery amid supply disruption worries

Egypt’s state grains buyer GASC issued on Saturday a new global tender for wheat for April delivery, with traders saying it includes a protective measure to secure shipments amid disruption concerns following Russia’s invasion of Ukraine.

Egypt, often the world’s largest wheat importer, cancelled a previous international purchasing tender on Thursday due to a low turnout from major exporters.

The General Authority for Supply Commodities or GASC set a deadline of February 28 for offers for the April 13-26 shipment with payment at sight. This tender is for an unspecified amount of wheat.

Russia and Ukraine are frequently the top exporters of wheat to Egypt, of around 50 percent and 30 percent of its wheat imports in 2021, respectively, according to data sent by two regional traders to Reuters.

“Last time there was only one offer before any attacks, now that the situation got serious, I’m sure suppliers are more apprehensive,” one trader told Reuters asking to remain anonymous. The suppliers in other regions were “equally scared”, the trader added.

GASC is expecting 180,000 tonnes of Ukrainian wheat between February 15 and March 3, in addition to another 180,000 tonnes of Ukrainian wheat in March. Traders have warned of the risk of force majeure that could lead to cancel the contracts.

For the tender for the wheat shipping in April, the Egyptian wheat authority is asking for offers on a cost and freight (C&F) basis or on a free-on-board basis (FOB). It typically asks for offers on a FOB basis and holds a separate shipping tender as well as the wheat tender.