Egypt state buyer makes rare Kazakhstan wheat purchase

Egypt’s state grains buyer has purchased wheat from Kazakhstan for the first time in at least 15 years, according to one person familiar with the matter and port data, marking a rare shift in sourcing as the country seeks to diversify its imports.

Future of Egypt bought two cargoes of Kazakh wheat — one of around 11,000 metric tons and another of around 21,000 tons — which arrived at Egyptian ports around mid-September, port data showed. A Future of Egypt official visited Kazakhstan earlier this month as it seeks to develop the trading relationship.

Kazakh wheat exports to Egypt have been rare, with no known state purchases since at least 2010, the source said. Landlocked Kazakhstan, which ships grain predominantely via Russia’s Black Sea ports, is increasingly seen as a strategic alternative amid global supply disruptions.

In September 2023, previous state buyer, the General Authority for Supply Commodities (GASC), was in talks with Emirati entities to secure funding for Kazakh wheat purchases, as part of efforts to broaden its supplier base beyond traditional sources.

Future of Egypt — also known by its Arabic name Mostakbal Misr — also purchased wheat from Russia, France, Bulgaria, Romania and Ukraine in recent weeks. Three sources said the agency had booked Russian wheat, while two cited purchases from France and Bulgaria. Two sources also said Romania was among the origins, and one added that Ukraine had been included as well.

Details of the latest purchases remain unclear. One of the sources said four Russian cargoes of 60,000 tons each had been booked, while another said Russian and Bulgarian wheat was bought at around $264 to $265 per ton for October or November shipment.

Egypt’s total wheat imports, including private sector purchases, fell nearly 30% to around 5 million tons in the first half of the year.

Tags: Egypt, Kazakhstan, wheat