Egypt’s state grain buyer, Mostakbal Misr, has reportedly secured enough wheat to meet the country’s needs until June 2025, according to two sources with direct knowledge of the matter.
However, the lack of detailed information regarding the timing, pricing, and the nature of these contracts has raised questions among traders about the actual volume of wheat procured.
The sources claim that Mostakbal Misr has contracted approximately 1.267 million metric tons of wheat, primarily sourced from Russia.
Shipments have already begun arriving at Egyptian ports, with further deliveries scheduled in the coming months.
Market Skepticism
Traders and industry observers have expressed skepticism about the announced transaction volume, citing inconsistencies between the reported figures and market evidence.
Furthermore, the lack of transparency regarding the procurement terms has fueled concerns.
Eduard Zernin, head of Rusgrain, stated that accredited Russian exporters were unaware of the details of this transaction as they did not participate in it.
A European trader suggested that while some wheat purchases were made, the actual volume was significantly lower than the figure mentioned by the sources.
Challenges and Concerns
Egypt heavily relies on wheat imports to support its subsidized bread program, which serves over 70 million people.
Recent months have witnessed challenges in importing wheat, while the country’s strategic reserves have dwindled.
An Egyptian government official highlighted the resistance faced by the new agency, Mostakbal Misr, from international organizations that offer hard currency to Egypt.
These organizations reportedly prefer to deal with “civilian bodies” rather than a government agency.
Previous Procurements
In September, the previous state grain buyer, GASC, purchased 430,000 tons of Russian wheat for October delivery.
However, delays pushed shipments to November and December, with only 120,000 tons delivered so far.
Egypt also acquired 290,000 tons of wheat in November.
Recent shipments represent a small portion of the country’s broader wheat procurement plan, which aimed to secure 3.8 million tons by the end of 2024.