Future of Egypt, Egypt's state grain buyer, has announced that it has reached private agreements with French exporters to purchase at least 200,000 tons of French wheat, as well as several 30,000-ton loads of wheat from Ukraine, Romania and Ukraine.

The nation of North Africa is one the top importers of wheat in the world. State agencies import an average of 5 million tons out of the total 12 million tons of wheat imported by Algeria.

In December, the military-linked Future of Egypt (or Mostakbal Misr) took over the international grain purchasing from the decades-old General Authority for Supply Commodities, marking a major shift in the food procurement strategy of the country.

GASC, an agency of the Ministry of Supply, has traditionally imported vegetable oils and wheat through international tenders. FoE has, on the other hand, made private deals with mainly local importers.

In the last two weeks, traders said that FoE could have booked up to seven large panamax ships of French wheat or more than 400 tons.

The traders stated that there was at least one 63,000 ton vessel scheduled for shipment between September 10-20, and payment would be made via letters of credit with a 270-day term. Other cargoes were also expected to be shipped in the next few weeks.

Wheat is used in the production of bread subsidised for over two thirds of the 108 million citizens who already struggle with high inflation rates and worsening conditions.

The country's failure to meet its target of 4 to 5 million tons for domestic wheat purchases in the 2024/25 period, which ended Friday, makes imports crucial.

They said that the price estimates for the shipments ranged from $265 to $270 per ton, cost and freight included. Some estimates were even higher, at $275 or more per ton, cost and freight.

FoE refused to provide details about prices or payment terms.

One German trader stated that "France has finished its harvest and French supplies are now available."

"I believe Egypt would prefer Russian but Russian new crop supplies are still stubbornly low as farmers do not sell enough, particularly 11% protein wheat."

Some agreements have been revised or rescheduled since the transition. Traders cited a less predictable procedure.

Egypt's wheat exports fell by 30% in the first six months of the year, to 4.9 millions tons. This includes both the imports of the state buyer and the private sector.

FoE had previously ordered about 180,000 tonnes of French wheat for loading in May and June. This was not done until early August. Reporting by Mohamed Ezz from Cairo, Sarah El Safty from Dubai, Michael Hogan and Gus Trompiz at Hamburg, and David Goodman and Jan Harvey for the editing.

(source: Reuters)