CAIRO: Egypt’s state grains buyer issued a new global tender for wheat on Saturday for April shipment, with traders saying it includes a protective measure to secure shipments amid concerns over disruption after Russia’s invasion of Ukraine.
Egypt, often the world’s top wheat importer, cancelled a previous international purchasing tender on Thursday because of low turnout from major exporters. The General Authority for Supply Commodities (GASC) set a deadline of Feb. 28 for offers for the April 13-26 shipment with payment at sight. The tender is for an unspecified amount of wheat. 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, now that the situation got 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 tonnes of Ukrainian wheat between Feb. 15 and March 3. It is expecting another 180,000 tonnes of Ukrainian wheat in March. Traders have warned of the risk of force majeure that would cancel the contracts.
For the tender for wheat shipping in April, GASC is asking for offers on a cost and freight (C&F) basis or on a free-on-board basis (FOB). The authority typically asks for offers on a FOB basis and holds separate shipping tender alongside the wheat tender.
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 4.5 months, a supply ministry official told Reuters on Friday.
Russian forces landed at Ukraine’s Black and Azov Sea ports as part 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 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. According to traders, at least one vessel carrying wheat purchased by GASC has been stuck at a Ukrainian port since Thursday with no indication on when crew would be allowed to continue loading.
Suppliers have also asked some traders and agents in Egypt if they would be able to switch banks to one other than Russia’s now-sanctioned Sberbank.
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