CAIRO: Egypt’s state grains buyer, the General Authority for Supply Commodities (GASC), said on Monday it had cancelled a second international tender for wheat in four days as the Ukraine crisis continued to disrupt grain markets.
The low number of three trading houses participated in the tender because of the supply uncertainty and market turbulence following Russia’s invasion of Ukraine.
“Importers are facing much higher prices and tighter supplies as the fighting in Ukraine cuts Black Sea wheat exports,” one trader said. “The fighting does not look like ending quickly which in turn means wheat exports from Ukraine and Russia are unlikely to return to normal quickly.”
Russia and Ukraine are top exporters to Egypt. GASC had made recent purchases of 360,000 tonnes of Ukrainian wheat, the delivery of which traders say could now be at risk, and has also bought Russian wheat which is yet to be delivered.
Egypt’s Supply Minister Ali Moselhy said wheat contracts with Russia and Ukraine still stood, and that the two countries were working to fulfil their contractual obligations.b. 24.
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