Egypt Is in Talks to Buy 1 Million Tons of Wheat From Russia

Egypt is in talks to buy 1 million tons of Russian wheat through a government-to-government deal, people familiar with the matter said.

The talks have taken place for delivery this season, said the people, who asked not to be identified as the information isn’t public. It’s not clear how close the two countries are to a deal.

Egypt is one of the world’s top wheat importers and its purchases are closely tracked as a global benchmark. Its state buyer last year began booking some wheat in private talks — marking a shift from its traditional process of securing grain through tenders — and since the beginning of the year has been allowed to import grain and vegetable oils via government-to-government deals.

Russia’s agriculture ministry didn’t respond to a request for comment. Egypt’s General Authority for Supply Commodities, known as GASC, declined to comment.

Russia has had two bumper harvests in a row, reinforcing its position as the biggest wheat shipper. Still, some recent sales of Russian wheat to Egypt have been complicated by efforts to enforce an unofficial price floor for the country’s supplies.

Tags: wheat, Russia, Egypt