Egypt resumes its wheat tender after August’s failed buying
Egypt’s General Authority for Supply Commodities (GASC) is seeking an unspecified quantity of wheat in its first international buying tender since August. Bids are due by November 4, with shipment expected between November 25 and December 15. This tender follows an August auction where GASC struggled to meet its target volume due to high seller premiums. Meanwhile, a delayed shipment of 430,000 tons is raising concerns about wheat supplies and Egypt’s financial strain amid rising global prices.
Egypt’s State Grain Buyer, the General Authority for Supply Commodities(GASC), announced on Sunday that it is seeking an unspecified quantity of wheat for an international buying tender for the First Time Since August.
It said that the deadline for offers is November 4, and they must be submitted free-on-board (FOB), with payment made using letters of credit valid for 270 days. Shipping will take place from Nov. 25 through Dec. 5, and/or Dec. 6- 15.
The GASC has not held a tender since a historic auction on August 6. The August tender was a response to President Abdel Fattah al-Sisi’s directives to procure 3.8 million tons of wheat, which would cover the annual wheat requirements and extend deliveries to April 2025.
The tender was only able to secure 7% of its target volume because sellers sought premiums and hedged against global uncertainty.
To find better deals, the GASC started direct negotiations with suppliers including an unknown Egyptian intermediary.
The shipment of 430,000 tons originally scheduled for delivery in October has now been delayed. Sherif Farouk, the Minister of Supply, has stated that he expects this shipment to arrive in October.
In October, Egypt’s Supply Minister, Mostafa Madbouly, said that Egypt has enough wheat reserves to last for five and a half months. This is slightly less than what he had said he would aim to achieve.
The delays in shipments not only add to the nervousness over supplies but also put additional pressure on Egypt’s finances, which are already under strain due to the global price increase since the August failed tender. This has been exacerbated by the subsequent delay.
Hesham Soliman was skeptical that the October shipment would ever arrive.
Why go to the store and buy more goods for the same period? What would you do with it? He said.
The GASC refused to comment on any attempt to bid for more.
Soliman stated that the price for the delayed cargo, including shipping would be around $265 per tonne, compared to $241 during the August tender, and $235 under the direct deal. (Reporting and editing by David Goodman, Barbara Lewis, and Mohamed Ezz)
Source Link : https://www.marinelink.com/blogs/blog/egypt-resumes-its-wheat-tender-after-augusts-failed-buying-102067
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