EGYPT—Egypt has made its largest wheat purchase on the international market since 2022, a decisive move to secure its food supply amidst falling global wheat prices.

The State Buyer of Grains (GASC) concluded an international tender on July 15, securing 770,000 tons of wheat.

This significant procurement will see 720,000 tons, or 93% of the total order, delivered by Russian exporters, with the remaining 50,000 tons sourced from Bulgaria.

On July 17, wheat prices closed at US$542.8 per ton on the Chicago Stock Exchange, reflecting a 22% decrease from the US$700 recorded on May 28. The expectation of an abundant global wheat supply largely drives this price drop.

The procurement deal comes after the country revised its wheat self-sufficiency target for the current fiscal year to 51% for the fiscal year ending June 2025, which falls short of the previously announced goal of 65%.

In May 2024, Egyptian President Abdel Fattah al-Sisi stated that Egypt does not need to increase its wheat cultivation.

Instead, he suggested using farmland to grow other export crops and using the export proceeds to import wheat. This approach aligns with the government’s broader strategy to diversify its agricultural exports.

Additionally, the purchase marks Egypt’s strategic effort to capitalize on the current lull in wheat prices, which have declined for over a month.

Projections from the United States Department of Agriculture (USDA) indicate a global wheat production increase of 5.4 million tonnes, reaching 796 million tonnes for the 2024/2025 period.

This rise is largely due to an improved harvest in the United States, which anticipates producing 54 million tonnes of wheat, its highest level in eight years.

The current weakness in wheat prices has also spurred demand from other importing nations. Algeria, for instance, concluded a tender on July 17 to acquire 600,000 tonnes of wheat from the international market.

This trend is likely to benefit other African importers as well. According to forecasts by the Food and Agriculture Organization (FAO), Africa, the second-largest wheat-importing region after Asia, is projected to see a 2.2% increase in cereal imports, reaching 55.6 million tonnes in the 2024/2025 period.

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