March 3, 2015
Egypt buys 110,000 tonnes of wheat from Russia and Ukraine
Egypt's state grains buyer General Authority for Supply Commodities (GASC), has purchased 110,000 tonnes of wheat from Russia and Ukraine.
Russia's deliveries consisted of 50,000 tonnes from Louis Dreyfus, 25,000 tonnes from Union and 10,000 tonnes from Alex Grain. 15,000 tonnes of Ukrainian wheat were ordered from Union and 10,000 tonnes from White Flour.
In February this year, the Egyptian government announced that transactions of wheat would be conducted in its national currency. GASC helped to negotiate for lower prices of the crop after initial offerings of 2,050-2,180-2,050 pounds/tonne (US$269-286) for Russian shipments and 2,000 pounds/tonnes (US$262) for those from Ukraine.
GASC will also encourage the local market to buy Black Sea grains in Egyptian pounds, as part of an effort to curtail wheat smuggling during the procurement period. This illegal activity occurs due to higher procurement prices being set for Egyptian wheat which are above international prices. Offenders reportedly sold government wheat imports falsely labelled as produce of Egypt.
GASC hopes to acquire most Russian wheat before the local season begins.