Mostakbal Misr purchased 180 thsd tons of French wheat

In April, Mostakbal Misr agreed to purchase about 180,000 tons of French wheat from two leading European traders. This was reported by Reuters, citing sources.

The deal coincided with the visit of French President Emmanuel Macron to Egypt. It was not previously reported. The news agency was unable to establish a direct connection between the purchases and this visit.

According to sources, Mostakbal Misr purchased two batches of 60,000 tons from one company and one batch of the same volume from another. The price of two batches was $246 per ton with immediate payment, and the third was $256 per ton with a 180-day payment delay.

Part of the French wheat volumes under the April deal were planned to be shipped in May, the rest in June.

This is a private agreement – thus, Mostakbal Misr directly provides supplies for a large-scale bread subsidy program in Egypt. Previously, grain traders were reluctant to work with a little-known agency associated with the military, the agency writes.

Mostakbal Misr began working in this direction in December. Previously, the import of grain and vegetable oils was supervised by another state agency – GASC, which organized international tenders. This is a civilian agency under the Ministry of Supply.

To assess risks and approve transactions, traders need certain documents that Mostakbal Misr did not provide, so local importers acted as intermediaries. Sources note delays in issuing letters of credit and appointing carriers.

Earlier this year, Mostakbal Misr directly purchased wheat of Bulgarian origin as part of a similar deal. The grain was successfully shipped, the news agency recalls.

Tags: Egypt, France, wheat