June 2, 2022

Egypt's General Authority for Supply Commodities to buy wheat in international tender

Egypt's General Authority for Supply Commodities (GASC), the state grains buyer, is looking to buy an indeterminate amount of wheat in an international purchasing tender, Reuters reported.

The deadline for submissions is June 1. The GASC said that offers can be made on a free-on-board (FOB) or cost-and-freight (C&F) basis, with payment made via 180-day letters of credit.

The GASC also said that shipping for FOB offers will take place from July 20-31 and/or August 1-10, and delivery for C&F will take place from August 1-20.

Egypt has purchased 350,000 tonnes of expensive wheat in a tender limited to EU origins only since Russia's invasion of Ukraine on February 24.

For the tender, GASC said it would accept offers from any of the approved import origins listed in its tender book.

Traders said GASC would also allow offers of Ukrainian wheat if it could be shipped from neighbouring countries such as Poland, Romania, or the Baltics/

Approximately 300,000 tonnes of Ukrainian wheat ordered by Egypt's state grains buyer for delivery in February and March has yet to be shipped, with one cargo stuck in port and four others yet to be loaded.

Ukraine is currently looking for ways to export grain out of the country, including breaking the Russian navy's months-long blockade of the Sea of Azov and the Black Sea, and shipping more grain by land.

Egypt, the world's largest wheat importer, relied heavily on Black Sea wheat shipments, which were disrupted by the war. Since then, it has been attempting to diversify its imports while relying on local harvest procurement.

-      Reuters