Government Makes Bid for Major USD 3.8 Million Metric Ton Wheat Tender

The General Authority for Supply Commodities (GASC), Egypt's state grains buyer, announced on Tuesday a massive tender for 3.8 million metric tons of wheat for import between October 2024 and April 2025. The tender is the largest ever for the key commodity, according to traders, and is open for offers until August 12th.

With its vast population, Egypt has historically been one of the world's largest wheat importers, with the GASC alone importing 5.5 million metric tons of wheat annually to cover its bread subsidies for tens of millions of people.

GASC is seeking wheat for shipment periods spanning the 1st to the 15th and/or the 16th to the 30th of each month, starting in October and continuing through April, with the shipment date in February being the 16th to the 28th. Egypt is seeking the cargoes on a free-on-board basis and will purchase using 270-day letters of credit.

The tender is unusual in requiring a freight offer six or seven months in advance and is capitalizing on a global sell-off wave that has sent wheat prices plummeting to four-year lows. If successful, the bid could significantly help the state save on key public spending costs. However, the bid remains a gamble as wheat prices could continue to fall even further.

"My colleagues [at the government] are seizing this opportunity to buy what we need amid the current situation in the global market," said Minister of Finance Ahmed Kouchouk at a press conference following the announcement.

The deal would also address a slight deficit in state wheat reserves. GASC strives to maintain a wheat reserve sufficient to meet nine months of demand, but current levels are sufficient for only 6.9 months.