Egypt makes largest wheat purchase since start of war

CAIRO, EGYPT — Egypt, the world’s biggest wheat importer, on June 2 made its largest wheat purchase since Russia’s invasion of Ukraine in late February, according to a Reuters report.

The General Authority for Supply Commodities (GASC), Egypt’s state grains buyer, said it purchased 465,000 tonnes of wheat in an international tender, including 175,000 tonnes from Russia, 240,000 tonnes from Romania and 50,000 tonnes from Bulgaria.

Traders told Reuters the cargoes were purchased at cost of $480 per tonne, an increase of 41% from Egypt’s last purchase before the invasion.

Ukraine is among the world’s top wheat exporters. With Russia blockading shipments out of Ukrainian ports, the price of wheat has soared to record highs in recent months.

The Egyptian government, which provides subsidized bread to more than 70 million of Egypt’s estimated 103 million people, announced on June 1 that it has banned trading of wheat by third parties until the end of August, preventing any sales other than to the government.

The government aims to buy the whole harvest from local farmers, as it targets 6 million tonnes of domestic wheat this year after Russia’s invasion of Ukraine and the ongoing war cut it off from much of the Black Sea wheat on which it relied.

Source: World Grain