Our Russian wheat shipment is secured: State grain buyer GASC has purchased 480k tons of Russian wheat directly from a Russian state-backed trader this week, an unnamed trader told Bloomberg yesterday. The eight-cargo purchase has been booked for shipment in November and December. The news outlet did not report the cost of the purchase.

We were expecting more: After Russia canceled a 480k shipment over pricing concerns in September, GASC was back in talks with the Russian government the same month to purchase 1 mn tons of wheat for delivery this season, Bloomberg reported.

Wheat prices are falling globally: Chicago wheat futures fell as much as 1.6% during yesterday’s trading, Reuters reported, citing “lower prices and hefty supplies in Russia keeping attention on export competition and tempered weather worries about southern hemisphere harvests.” Analysts are also expecting Russian wheat exports to fall this month on the back of weak demand.

ICYMI- We just bought Bulgarian and Romanian wheat: The GASC bought 170k tons of wheat in an international tender in late September. The International Islamic Trade Finance Corporation is providing the finance.

Remember: GASC began to buy directly from suppliers — rather than through its traditional international tenders — last year, after the war in Ukraine triggered a surge in global food prices.

DATA POINT-

Egypt’s wheat imports rose by a third in 9M 2023, hitting 8.3 mn tons, up from 6.4 mn tons in the same period last year, Asharq Business reports, citing a government report. Russian wheat made up 80% of our total wheat imports in 9M 2023, the regional news outlet added, while Ukraine provides just over 10% of our wheat. Romania, US, Australia, Canada, and Moldova also supplied us with wheat in the first three quarters of the year.

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