POST Online Media Lite Edition



 

U.S. wheat wins first Egypt tender in two years

Staff Writer |
U.S. wheat grabbed its first sale to the Egyptian government in more than two years as the world’s biggest buyer requested grain with a higher protein content, knocking France out of the mix.

Article continues below






Egypt’s General Authority for Supply Commodities bought two cargoes of U.S. wheat totaling 115,000 metric tons, of 39 percent of the amount purchased, according to two traders involved who asked not to be identified because they’re not authorized to speak to the media.

Romanian grain was the cheapest, and Egypt also bought from top shipper Russia and Ukraine.

U.S. sales to Egypt’s state-run buyer had stalled since 2015 after record production elsewhere led to heavy price discounting.

While Russian wheat has dominated Egyptian tenders this season, accounting for almost 70 percent of the grain purchased, U.S. supplies are becoming more competitive with current domestic prices about 18 percent cheaper than the previous sale.

Egypt, the world's largest importer of wheat, has procured 2.33 tonnes of wheat from local farmers since its harvest began in mid-April, the supply ministry said.

The ministry said it would provide a premium to farmers of 15 Egyptian pounds ($0.83) per tonne for wheat stored and transported in jute bags and 10 pounds per tonne for wheat stored in silos located far from production areas with over 50 percent empty storage capacity.


What to read next

Egypt to hire inspection company, pay small premium, to prevent fraud
Egypt cancels zero common grains fungus wheat policy
Russia boycotts Egypt in response to wheat dispute