Egypt Adds to Wheat-Buying Spree With More Black Sea Purchases

Egypt’s new wheat-buying agency has booked about half a million tons of the grain from the Black Sea region for import in December and January, according to a person familiar with the matter.

Mostakbal Misr will obtain 200,000 tons from Russia, 150,000 from Bulgaria and more than 130,000 from Ukraine, said the person, who requested anonymity to discuss private transactions.

Workers unload a delivery of wheat grain at a government operated-mill in Egypt. Photographer: Islam Safwat/Bloomberg

The agency is also in negotiations to book another half million tons of wheat from various origins and seeks to reach a deal by the start of December, the person said.

Egypt is the world’s top wheat buyer and its purchases are closely watched as indicators of global demand and of which origins are most competitive. The US Department of Agriculture forecasts the nation will import a record 13 million tons this season.

The North African nation has already been on a buying spree. Bloomberg last month reported its recent purchases totaled about 1 million tons and were sourced from Black Sea nations as well as France and Kazakhstan. Shipments were expected to arrive through early December.

Mostakbal Misr took over responsibility for government purchases late last year, assuming the task previously executed by the General Authority for Supply Commodities.

Egypt’s wheat stocks are now sufficient until the end of February, according to the person.

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