Gov’t still on track to secure 3.8 mn tons of wheat by year’s end, says supply minister

Government is dead set on its massive wheat buy: The government will announce the purchase of 3.8 mn tons of wheat before the end of the year, Al Arabiya quotes Supply Minister Sherif Farouk as saying. The purchase may involve direct cooperation with a foreign government, Farouk added. This comes a week after the government’s largest wheat tender to date fell short of its target and follows reports that it is currently in discussions to purchase up to 1.8 mn tons of wheat from international suppliers through direct orders.

ICYMI- State grains buyer GASC last week purchased 280k tons of wheat in a tender that aimed to secure some 3.8 mn tons, locking in just c. 7% of its target. The tender was launched to capitalize on a dip in wheat prices, seeking to procure nearly a third of the country’s yearly requirement of the grain.

Imports from Turkey could help fill the gap: GASC is looking into importing wheat from Turkey and is exploring other sources, Asharq Business reports, citing GASC Deputy Chairman Hossam El Garhy. However, Turkey is not a major wheat exporter and still needs to import 8-9 mn tons annually to cover its own needs, a GASC wheat supplier told Enterprise. Egypt imported a meager c. 7.1k tons of wheat from Turkey over the first seven months of the year — compared to none during the same period last year — a source at the Supply Ministry told us.

We’re hoping to get special treatment: Egypt should be granted preferential payment terms and prices on its wheat imports seeing as it is the world’s largest importer of the grain, Al Arabiya quoted Farouk as saying. However, a GASC supplier told Enterprise they questioned whether this is possible because Egyptian wheat tenders immediately impact global prices once they are launched.

Pulse check on the country’s strategic reserves: Egypt has a 6.3-month supply of strategic wheat reserves, El Garhy said. The Supply Ministry aims to bolster these reserves to cover more than nine months of consumption, Supply Minister Sherif Farouk told Asharq Business separately.