EGYPT — Egypt’s state commodities buyer, the General Authority for Supply Commodities (GASC), is in advanced discussions to purchase up to 1.8 million metric tons of wheat from global suppliers, including Russia, Zawya has reported.
These negotiations come in the wake of GASC’s recent tender attempt, which failed to secure the full 3.8 million metric tons of wheat it sought for delivery between October 2024 and April 2025.
Despite aiming to lock in lower wheat prices through what was intended to be its largest-ever tender, traders in Europe and the Middle East argue that GASC could only finalize purchases for a fraction of its requirements.
The ongoing discussions are expected to cover approximately half of the quantity GASC initially sought. Russia, Egypt’s primary wheat supplier, is a key player in these talks. However, the involvement of wheat from other countries remains uncertain.
Russian wheat has become increasingly significant in the Middle East and other emerging markets.
Russia, the world’s largest wheat exporter, aims to boost its agricultural exports by 150% by 2030. This strategic expansion aligns with Russian President Vladimir Putin’s close ties with Egyptian President Abdel Fattah El-Sisi, who congratulated Putin on his reelection earlier this year.
Additionally, Russia is investing heavily in Egypt, including the construction of the US$30 billion Dabaa nuclear power plant.
Following the recent tender on Monday, where GASC acquired only 280,000 tons of wheat, far short of the 3.8 million tons requested, the focus has shifted to direct negotiations.
The initial discussions for these direct supplies indicate a price of around US$248 per ton FOB, with a payment delay of approximately 270 days. This price is higher than the lowest FOB price of US$241 per ton secured in the tender.
No formal purchase agreements have been reported as of now. Potential suppliers include Russian firms such as United Grain Co (UGC) and Demetra.
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