Egypt’s wheat tender falls short of target

Egypt is having difficulty securing wheat in advance, with its state buyer acquiring less than a tenth of its target in a major tender. The General Authority for Supply Commodities (GASC) purchased 280,000 tons of wheat from Ukraine and Bulgaria for October and November delivery.

Initially, GASC aimed to procure up to 3.8 million tons for delivery between October and April. Egypt typically tenders for wheat one to two months in advance, buying less than a million tons each time.

This large-scale tender marked a new strategy for the world’s top wheat importer, following a cabinet reshuffle aimed at curbing inflation, which remains above 25 per cent. In May, Egypt raised the price of subsidised bread for the first time in decades to reduce government spending. In the end, GASC bought only five cargoes at prices ranging from $259.24 to $269.25 per ton, including freight.

Of the 15 participating traders, Olam International Ltd. and Archer-Daniels-Midland Co. offered cargoes for April 2025 delivery, while most offers were for delivery in October, November, and December.

Wheat futures have been trending lower as abundant US crops keep markets well supplied, despite smaller harvests in Russia and France. Chicago wheat futures for September delivery were down 1.2 per cent as of 9:40 pm London time, with the tender news having no impact.

Attribution: Bloomberg

Subediting: M. S. Salama