Egyptian company Mostakbal Misr purchased 180 thousand tons of French wheat

Mostakbal Misr Agency in April agreed with two leading European traders to purchase 180,000 tons of French wheat, Reuters reported, citing its own sources.

 

The previously unreported deal coincided with a visit to Egypt by French President Macron, but the agency was unable to establish a direct link between the events.

 

Recall that the Mostakbal Misr company began holding international tenders for the purchase of grain and vegetable oils for Egypt at the end of 2024, replacing the state agency GASC.

 

According to traders, since December 1, Mostakbal Misr has supplied 1.1 million tons of wheat to GASC, most of which it purchased from Russian sellers and the rest from Egyptian traders and intermediaries.

 

Sources report that Mostakbal Misr purchased two batches of wheat of 60,000 tons from one trader at a price of $246/ton C&F with immediate payment and from another trader one batch of 60,000 tons at a price of $256/ton C&F with payment in 180 days. Delivery is scheduled for May-June.

 

Through similar private agreements, Mostakbal Misr provides direct supplies of wheat for a large-scale bread subsidy program.

 

Grain traders have previously been reluctant to work with a little-known agency linked to the military, Reuters notes. To assess risks and conclude deals, traders need certain documents, which Mostakbal Misr does not provide. Therefore, local importers act as intermediaries. Sources also report delays in issuing letters of credit and appointing carriers.

 

Recall that earlier, within the framework of a similar agreement, Mostakbal Misr directly purchased Bulgarian wheat, which has already been shipped.

 

According to Russian analysts, the asking price for July deliveries of new harvest Russian wheat remains at $227/t FOB, which corresponds to the price level for new harvest French wheat of $227/t FOB, while prices for Romanian wheat are $225/t FOB, and for American wheat – $222/t FOB.