Egypt is taking advantage of the recent drop in global wheat prices to purchase nearly a third of its annual wheat requirement in a single transaction. Egypt’s plan came to light when the General Authority for Supply Commodities, the state-run wheat buyer, announced a tender to buy up to 3.8 million tons of wheat next week. As one of the world’s largest wheat importers, Egypt typically buys less than a million tons at a time and does not disclose intended purchase amounts. However, the tender process, which invites competitive bids, requires public disclosure of purchase amounts and terms, leading to longer delivery periods. According to Finance Minister Ahmed Kouchouk, the decrease in the global market and global commodity prices is responsible for this strategic opportunity that will allow the country to stock up on wheat to meet near-future demands.
SOURCE: BUSINESS INSIDER
Egypt to Capitalize on Falling Wheat Prices with Major Purchase
