– Egypt’s General Authority for Supply Commodities (GASC) has announced its largest ever tender, seeking 3.8 million metric tons of wheat for import between October 2024 and April 2025.

– The tender represents a major shift in GASC’s purchasing strategy, with traders expressing concerns about the feasibility of submitting bids six to seven months in advance and the impact of 270-day payment terms.

– Egypt aims to boost its wheat reserves, which are currently sufficient for 6.9 months of demand, amid ongoing economic challenges and global market fluctuations.

Egypt’s state grains buyer, the General Authority for Supply Commodities (GASC), unveiled a historic tender, seeking 3.8 million metric tons of wheat for delivery between October 2024 and April 2025. This marks the largest tender ever conducted by GASC, Reuters reported.

As one of the world’s foremost wheat importers, Egypt relies heavily on these imports to support its bread subsidy program, which benefits tens of millions of citizens. GASC alone purchases approximately 5.5 million metric tons of wheat annually for these subsidies.

The tender encompasses shipment periods from the 1st to the 15th and/or the 16th to the 30th of each month, beginning in October and extending through April. The shipment window for February will be from the 16th to the 28th. GASC is requesting offers on a free-on-board basis and will use 270-day letters of credit for purchases.

Traders are asked to submit bids for at least three months’ worth of shipments, with the deadline for offers set for August 12.

“This is a very strange tender,” said one trader. “We usually submit bids for shipping a month or two in advance. It would be very difficult to submit a freight offer six or seven months in advance,” he added.

Traders have noted that this tender represents a significant shift in GASC’s purchasing strategy and could have major implications for Egypt, which is working to stabilize its economy with assistance from the International Monetary Fund and Gulf countries that have injected billions of dollars in loans and investments in 2024 alone.

Egypt’s Finance Minister Ahmed Kouchouk acknowledged that not all impacts of the global market downturn are negative, highlighting that commodity prices are currently at an almost four-year low.

“My colleagues are seizing this opportunity to buy what we need amid the current situation in the global market,” Kouchouk said.

Following GASC’s announcement, European wheat futures saw an uptick on Tuesday (yesterday).

Traders, however, expressed doubts about Egypt’s ability to achieve its ambitious goals. “I doubt if they will be able to get the full volume,” said another trader, citing the 270-day payment terms as a deterrent. Conversely, a third trader suggested that trading houses would likely factor the banking costs of the delayed payment into their price offers to secure the business.

GASC aims to maintain a wheat reserve sufficient to cover nine months of demand. As of July, Egypt’s strategic reserves were estimated to be adequate for 6.9 months.“It appears that Egypt wants to get big supplies in storage or at least in its books. This could be due both to Egypt’s financial problems or the threat of greater war in the Middle East,” a European trader told Reuters. “They could shoot themselves in the foot by buying in advance but then having to regret if prices fall later.”