EGYPT – The Damietta Port Authority in Egypt has received a shipment of 66,000 metric tons of Russian wheat as part of Egypt’s broader strategy to diversify its sources amid fluctuating global market conditions.

Damietta Port plays a critical role in Egypt’s grain storage and distribution infrastructure. As of now, the port’s grain silos hold over 181,000 metric tons of wheat, ensuring that the country can maintain a robust reserve.

This is crucial for stabilizing domestic markets and managing price fluctuations, especially in a global environment where wheat prices have seen significant drops due to sluggish economic growth worldwide.

Further strengthening its capabilities, Damietta Port is benefiting from a US$455 million investment to develop a second container terminal.

This expansion, financed by a consortium of international institutions, will enhance the port’s handling capacity and improve its connectivity, particularly its strategic position near the Suez Canal.

Egypt imports nearly 60% of its wheat needs, relying significantly on key exporters like Russia and Ukraine.

Despite the ongoing conflict in Ukraine, Russia remains a dominant player in the global wheat market, with its exports capturing an unprecedented 28% of the market in the first quarter of the 2023-2024 marketing year.

Recently, Egypt made headlines by issuing a 3.8 million metric tonne wheat tender, capitalizing on a dip in global wheat prices that reached a four-year low.

This tender, which specifies shipment periods from October 2023 to April 2024, has attracted significant interest from traders, with 102 offers submitted by 15 suppliers.

However, despite the premium prices, traders expressed concerns about the delayed payment terms and the longer shipping periods, particularly for Ukrainian wheat, which was offered at the lowest price of US$244 per metric ton.

This comes as the Egyptian government also ramps up domestic wheat procurement, aiming to purchase 4 million tons of local wheat during the current harvest season.

For the fiscal year 2024/25, GASC plans to secure a total of 8.25 million metric tons of wheat for bread subsidies, sourced from both the local harvest and imports, at an estimated cost of nearly 96 billion Egyptian pounds (US$1.95 billion), according to the state budget.

The government has already procured 3.6 million metric tons in the local harvest this year.

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