In a bid to secure its wheat supply, Egypt’s state grains purchaser, the General Authority for Supply Commodities (GASC), revealed its acquisition of 235,000 tons of Russian wheat through an international tender on Tuesday.
The wheat purchase has been divided into two portions: 175,000 metric tons slated for shipment between September 15 and 30, and an additional 60,000 metric tons scheduled for October 1 to 15, as detailed by the GASC. Remarkably, the tender attracted only four trading firms, signaling a relatively low participation rate from potential wheat suppliers. This is notable given that Egypt is a major global customer for wheat exporters.
Market observers speculate that the subdued response to the tender could be attributed to concerns surrounding potential disruptions in ocean shipping from Russia. These concerns have escalated following a recent incident involving a Ukrainian attack on a Russian tanker over the weekend. The uncertainty surrounding shipping routes and security measures has likely influenced the cautious approach taken by wheat sellers in the international tender.