Egypt did not allow wheat from Russia and the EU to the next public procurement

Scheduled for Tuesday, the next tender of the Egyptian GASC (state food procurement company) will be held without the participation of Russian and European wheat, grain market experts said in their telegram channels.

The organizers of the tender are waiting for the participation of wheat from the USA, Canada, Australia, Argentina, Brazil on the basis of C&F with payment in 180 days. Grain deliveries are scheduled from 16 to 30 September, from 1 to 15 October, from 16 to 31 October, from 1 to 15 November. Grain from Russia and the European Union is not allowed to tender.

„This tender is very similar to an experiment. The largest grain buyer decided to test alternative supply channels both in terms of supply volumes and prices,” Eduard Zernin, chairman of the board of the Union of Grain Exporters, told Interfax.

„According to our estimates, the EU countries, which aggressively participated in the first tenders of this season and significantly selected their export potential, will significantly reduce the supply by October-November, so GASC needs new suppliers that can balance the Black Sea volumes,” he said.

Another reason for the attempt to diversify supplies Zernin called the fact that the European Commission fears a drought in almost half of its territory this summer. This can lead to a significant reduction in yield.

The head of SovEcon, Andrey Sizov, calls the upcoming tender without access to it the main suppliers mysterious.

„The meaning of the event is not very clear, except to remind the Europeans and Russia that the world has not converged on them. American SRW wheat will go quietly at a price, but usually the Egyptians do not take it,” he wrote in his telegram channel.

As Sizov told Interfax, the main message is that GASC may well buy American wheat at a price several tens of dollars lower than from Russia and the EU. According to the results of the past agricultural year (July 2021-June 2022), Egypt closes the top 3 buyers of Russian wheat with a volume of 4.9 million tons (according to ProZerno).

Ethan Andrews

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