Reuters reported – citing two informed sources – that Egypt’s Future Agency for Sustainable Development, the government grain buyer, has contracted enough wheat to meet the country’s needs until the end of June 2025.
But the lack of disclosure of details – about timing, pricing and whether the contracts represent completely new deals – led some traders to question the size of the deals.
The two sources – who requested that their names not be published – said that Egypt Future Agency contracts amounted to about 1.267 million tons, most of which were from Russia.
They added that the contracted wheat shipments have begun arriving at Egyptian ports, and other shipments are scheduled to be delivered in the coming months.
The selection of Egypt’s Future Authority this month to become the country’s sole importer of strategic primary commodities represented a major shift.
The agency – which was established in 2022 by presidential decree – was previously the development arm of the Egyptian Air Force, while the General Authority for Supply Commodities, which was established decades ago, was the buyer of strategic grains in the country.
The General Authority for Supply Commodities usually imported between 4 and 5 million tons annually.
Traders and observers pointed out that there were discrepancies between the quantities contracted by the Egypt Future Agency, which were mentioned by the two sources, and the evidence seen so far in the market, as well as a lack of clarity on the terms of purchase.
Eduard Zernin, head of the Federation of Grain Exporters in Russia, told Reuters, “We cannot confirm the announced deal. Authorized Russian exporters are not aware of its details because they did not participate in it.”
A European trader reported that some quantities had been purchased, but they were “not close at all” to the number mentioned by the two sources.
Another trader stated that the quantity amounted to about 480 thousand tons, which was mainly contracted from local port warehouses and paid for in Egyptian pounds.
Reuters could not independently verify this information.
Egypt relies on wheat imports to provide subsidized bread for about 70 million people, and has faced challenges importing it during the past few months, while its strategic reserves have shrunk.
An Egyptian government official told Reuters that the new device faced resistance from international organizations that provide hard currency to Egypt.
The official added that they said they would only deal with civilian bodies, not with a government agency, adding that strategic reserves had decreased from a 7-month stock in July 2024 to a reserve sufficient for only 3 months now, including previously contracted quantities.
Last September, the General Authority for Supply Commodities purchased 430,000 tons of Russian wheat for delivery last October, but delays led to the shipments being postponed to last November and this December, and only two shipments were delivered, with a total of 120. thousand tons so far.
Egypt purchased 290,000 tons last November, bringing the total wheat shipments since last September to 410,000 tons.
This number represents a small part of Egypt’s broader wheat supply plan, which aims to obtain 3.8 million tons by the end of 2024, an estimate announced earlier by Supply Minister Sherif Farouk.
