Egypt's GASC Issues Wheat Tender amid Supply Disruption Worries

Egypt’s General Authority for Supply Commodities (GASC) issued a tender on Saturday to buy an unspecified amount of wheat from global suppliers for shipment from April 13-26, according to Reuters.

“The deadline for offers is Feb. 28, and payment is in sight," it said.

Egypt, often the world’s top wheat importer, canceled a previous international purchasing tender on Thursday because of low turnout from major exporters after Russia’s invasion of Ukraine.

Russia and Ukraine are frequently the top exporters of wheat to Egypt, making up around 50% and 30% of its wheat imports in 2021, respectively, data from two regional traders shows.

"Last time there was only one offer before any attacks, but now that the situation has gotten serious, I’m sure suppliers are more apprehensive," said one trader, asking to remain anonymous, adding that suppliers in other regions were "equally scared."

GASC is expecting 180,000 tons of Ukrainian wheat between Feb. 15 and March 3. It is expecting another 180,000 tons of Ukrainian wheat in March. Traders have warned of the risk of force majeure that would cancel the contracts.

"Egypt’s prime minister and central bank governor on Thursday discussed the availability of funds to cover imports of strategic commodities. The country’s wheat reserves stand at more than four months," the cabinet said.

“Russian forces landed at Ukraine’s Black and Azov Sea ports as part of its invasion, and Ukraine has suspended commercial shipping at its ports, although some Russian Black Sea ports remain open," traders said on Friday.

Ukraine said on Friday that Russia had so far attacked three non-military vessels, including a Panamanian-flagged cargo ship due to load grain near Odessa port in the Black Sea.