Egypt Capitalises On Falling Wheat Prices With Massive Purchase

Emmanuel EjioforAugust 8, 20241 Mins read299

Egypt’s state-run grain buyer, General Authority for Supply Commodities (GASC), has announced plans to buy up to 3.8 million tons of wheat through a tender next week, according to Bloomberg.

Egypt plans to take advantage of the recent drop in global wheat prices by purchasing nearly a third of its annual wheat needs in one large transaction.

This move also marks a return to tender-based purchases after Egypt shifted to direct buying last year due to disruptions caused by the war in Ukraine. The Russian-Ukraine conflict had increased wheat import costs, particularly in Africa, where annual spending on wheat imports surged to $20 billion.

In a tender process, the buyer publicly announces the intended purchase amounts and terms, which attract competitive bids, often leading to a more extended delivery period.

“There is a decrease in the global market and global commodity prices,” Egypt’s Finance Minister, Ahmed Kouchouk, said Tuesday. “It is a chance to buy what we need of these goods due to the current situation in the global market.”

Egypt, one of the world’s largest wheat importers, is closely watched by traders for its influence on market trends. The U.S. Department of Agriculture (USDA) projects that Egypt’s total wheat imports for 2024-25 will reach 12 million tons.

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