Egypt Scoops Up Russian Wheat From State-Backed Trader

Egypt booked eight cargoes of wheat from a Russian state-backed trader in a direct deal this week, according to traders who asked not to be identified.

Egypt ranks among the world’s top wheat buyers, and the deal reflects about 480,000 tons, or about 4% of its annual imports. Its state-run importer — the General Authority for Supply Commodities — booked the grain for November and December shipment, the traders said.

Bloomberg reported last month that the country was in talks to buy 1 million tons of wheat from Russia in a government-to-government deal. OZK, also known as United Grain Co., is majority-owned by the Russian government.

OZK’s press office said that it did not have information on commercial shipments outside public tenders. A spokesperson for GASC did not immediately reply to requests for comment.

Russia is the world’s biggest wheat shipper and is typically one of Egypt’s leading suppliers, given its proximity and back-to-back bumper harvests. However, some recent deals have been complicated after Moscow pushed back on pricing.

Tags: Egypt, wheat, Russia