Egypt to buy up wheat supply as global prices fall sharply
Egypt, a major wheat importer, shifted from tenders to direct purchases due to the Ukraine war, which increased African wheat import costs to $20 billion annually. Egypt usually buys less than a million tons at a time without disclosing amounts. Finance Minister Ahmed Kouchouk noted decreased global commodity prices as an opportunity to buy needed goods. The USDA projects Egypt’s wheat imports for 2024-25 at 12 million tons. Chicago wheat futures traded higher but remained near a four-year low.
At some point last year, Egypt, one of the world’s biggest importers of wheat, began shifting towards direct purchases instead of tenders after the war in Ukraine disrupted its buying process. The conflict reportedly pushed the annual expenditure of African countries on wheat imports to $20 billion.
Typically, the country buys less than a million tons at a time and does not disclose the intended purchase amount.
However, for the tender process, the intended purchase amounts and terms are usually publicly disclosed to invite competitive bids which results in a longer-than-usual delivery period.
“There is a decrease in the global market and global commodity prices,” Egypt’s Finance Minister Ahmed Kouchouk told reporters on 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 top wheat buyers, is closely monitored by traders as its purchases often indicate market trends. The USDA projects the country’s total wheat imports for 2024-25 to reach 12 million tons.
On Tuesday, wheat futures in Chicago traded higher but remained near a four-year low, as abundant U.S. crops continue to keep the market well supplied.
Source Link : https://africa.businessinsider.com/local/markets/egypt-to-buy-up-wheat-supply-as-global-prices-fall-sharply/ekkt5h9
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