Egypt’s GASC says it has cancelled its international wheat tender

Egypt’s state grains buyer, the General Authority for Supply Commodities (GASC), said on Wednesday it had cancelled an international tender for wheat for shipment between April 13-26 with no purchase made.

An unusually low number of three trading houses were said to have participated in the tender because of the supply uncertainty and market turbulence following Russia’s invasion of Ukraine.

Traders said tender participants had been unwilling to cut their price offers in afternoon negotiations because of rising grain markets as the Ukraine crisis cut supplies of Black Sea wheat on world markets. GRA/

French wheat was offered at the lowest price of $429.22 a tonne c&f with a rare submission of wheat from the United States made. In its last wheat purchase on Feb.17, GASC bought 180,000 tonnes all at $338.55 a tonne c&f after receiving about 20 offers from trading houses.

“There was a very thin participation in the GASC tender today with the deep uncertainty in the world market after the events in Ukraine causing unwillingness to take part,” one European trader said.

Egypt, often the world’s top wheat importer, is working to buy wheat from other regions rather than its major suppliers Russia and Ukraine, whose exports are being disrupted by the fighting in Ukraine.

Russia provided around 50% of Egypt’s wheat imports in 2021 and Ukraine 30%, grain industry data shows.

“Egypt needs to find new sources of wheat but today’s tender indicates it does not look like being easy to find alternative supplies in the current tight world market with prices so volatile,” another trader said.

GASC had cancelled its previous wheat tender on Feb. 24 following low turnout from major exporters after Russia’s invasion of Ukraine.

Tags: Ukraine, Russia, Egypt, tender, France, wheat, USA