Egypt still aims to secure 3.8 million tonnes of wheat by year end
Egypt’s Supply Minister Sherif Farouk has expressed confidence in securing 3.8 million metric tons of imported wheat by year-end through tenders, direct purchases, and government agreements ¹. The General Authority for Supply Commodities (GASC) launched a record-breaking tender on August 6 for 3.8 million metric tons of wheat, which traders described as the largest ever ¹. This move aims to take advantage of the current slump in global wheat prices to secure imports at a lower cost ¹.
CAIRO, Aug 19 (Reuters) -Egypt remains confident of securing its target of around 3.8 million metric tonnes of imported wheat by the end of 2024, through a combination of tenders, direct purchases and government-to-government agreements, a minister said on Monday.
“We still have (a) green light to engage in direct talks to get the best price,” Supply Minister Sherif Farouk told reporters on Monday, adding that Egypt should be afforded certain “advantages” in its wheat imports, whether through favorable payment terms or preferential pricing, because of the significance of its wheat buying.
Egypt’s state grain buyer, the General Authority for Supply Commodities (GASC), launched a tender on Aug. 6 which traders said was the biggest ever by the world’s largest wheat importer.
But on Aug. 12 it said it had purchased only 280,000 tonnes, falling significantly short of its target.
Traders attributed the shortfall to higher prices driven by the extended payment delays that were offered. Since then, GASC has engaged in informal discussions with suppliers, traders said.
“We are in constant talks with everyone; traders, governments, and even farmers’ unions,” GASC Vice Chairman Hossam El Garahy told reporters.
Traders estimate that GASC is aiming to purchase up to 1.8 million tonnes of wheat, from sellers including Russia, at a reported free-on-board price of around $248 per tonne, with payment made via 270-day letters of credit.
“We are confident that we can buy (wheat) at discounted prices from our two main sources, thanks to balanced foreign relations,” Farouk said.
While he did not specify the sources, Russia and the EU have been key suppliers for Egypt. He also noted Egypt is exploring the possibility of adding Turkey as a new origin for wheat imports, following Algeria’s recent significant purchase from the country.
Farouk said Egypt’s wheat reserves currently cover well over six months of demand, but the supply ministry aims to extend reserves to more than nine months to mitigate potential “geopolitical tensions”.
“Our goal is to always maintain a reserve enough for over six months for all strategic commodities,” Farouk said.
El Garahy said Egypt’s wheat reserves cover 6.3 months, vegetable oils enough for 6.2 months, and sugar for 13 months.
Farouk also said that while GASC could access loans to buy wheat at sight, or for immediate payment, it is still seeking better payment terms.
Source Link : https://www.xm.com/research/markets/allNews/reuters/egypt-still-aims-to-secure-38-million-tonnes-of-wheat-by-year-end-53908261
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